DETROIT _ The UAW's new contract with General Motors is expected to be ratified Friday, putting a bonus check in workers pockets.
But some workers may not come out ahead financially right off the bat.
The six-week-long work stoppage resulted in about $6,000 in lost wages per worker. The wage loss is supposed to be mitigated with a ratification checks of $4,500 and $11,000.
But according to figures from Anderson Economic Group experts based in Lansing, temp workers and in progression workers have lost $5,280 and $6,240 respectively but will receive the smaller $4,500 ratification bonus.
The bonuses are helpful, said UAW Local 163 President Ralph Morris, but not necessary to win ratification. Local 163 represents members at GM's Romulus Powertrain plant. Thursday it voted to ratify the proposal, with 616 members voting yes and 448 voting no.
"The members didn't ratify it because they felt they were starved out," said Morris.
About 46,000 UAW workers went on a nationwide strike at 12:01 a.m. Sept. 16.
The strikers across 10 states earned $250 a week in strike wages until the UAW raised the pay to $275 a week on Oct. 13.
Anderson Economic Group conducted its analysis of the impact upon workers based on seniority, job class and wage scale.
The tentative contract's immediate impact on GM would be significant, Anderson's CEO Patrick Anderson said. He described the payouts as "substantial" as GM pays $485 million in ratification bonus costs.
"Michigan residents are in line to receive nearly half of these bonus monies, with a sum approaching $238 million," Anderson said.
He further indicates that GM shareholders will bear much of the cost of these payouts, including Michigan-resident shareholders, who will absorb a cost of approximately $58 million.
