GM, autoworkers reach a contract deal; more jobs, pay

— -- Late Friday night, the UAW and General Motors reached a deal on a tentative labor agreement covering 49,000 U.S. workers that gives a long-awaited glimpse into what the post-bankruptcy Detroit auto industry — and union — will look like.

The deal will create an undisclosed number of new jobs, and if the terms are viewed as reasonable, it will likely be heralded by the backers of GM's 2009 government-backed bankruptcy as proof the rescue was a success.

"This contract will get our members who have been laid off back to work, will create new jobs in our communities and will bring work back to the United States from other countries," UAW President Bob King said in a statement released just after 11 p.m.

While many details of the deal were not immediately divulged, the UAW press release shared some of the positive highlights of the deal:

• "Significant" investments and products for GM plants.

• Wages and benefits that "reflect the fact that it was UAW members who helped turn this company around," said Joe Ashton, UAW vice president

• Improved profit sharing

The new jobs include opportunities at powertrain plants in Warren and Romulus, Mich., and Wentzville, Mo., people familiar with the talks said. GM will also reopen the former Saturn assembly plant in Spring Hill, Tenn., they said.

Profit sharing will now be based on income from all GM's North American operations, not just U.S. plants, a person familiar with the deal said. With the new formula, the average profit-sharing check from last year's $5.7 billion North American profit would have been between $5,000 and $6,000, instead of the $4,000 or so that workers received, the person said. The union claimed profit sharing would be more transparent. Indeed, the bonuses will be based on a simple chart that lists ranges of profits and corresponding profit-sharing payouts, the person said. The bonuses will have a cap.

The contract also increases the entry-level wage, the person said.

Now, the UAW must sell the deal to its GM members. A vote is expected to take place in seven to 10 days.

Thomas Guyton, a 25-year GM worker now at the Pontiac stamping plant, said he was "pretty confident" the two sides would reach a deal. He said he hopes GM will be "restoring some of the benefits for the retirees and a raise of some kind for the new hires."

The four-year deal could set the competitive tone for the Detroit Three as they continue recovering from the Great Recession that sent GM and Chrysler into bankruptcy two years ago.

After kicking off negotiations in late July, it was clear the UAW was making more progress at GM, and both sides worked toward reaching a deal before the Sept. 14 expiration of the 2007 contract. That didn't happen. Final details were eventually hammered out at about 11 p.m., after several days in which a deal seemed close, punctuated by an angry letter to UAW President Bob King from Chrysler and Fiat CEO Sergio Marchionne.

Friday night, union officials heralded their tentative deal.

"We worked hard for a contract that recognizes the realities of today's marketplace, enabling GM to continue to invest in U.S. manufacturing and provide good jobs to thousands of Americans," said Cathy Clegg, GM vice president of labor relations.