DETROIT—General Motors Co. Chief Executive Dan Akerson said a new labor contract with the United Auto Workers union will allow the company to be profitable in North America even if auto sales sink to lows seen during the height of the economic meltdown.
The contract keeps GM’s labor costs almost level—they are expected to increase by around 1%, GM says—and leaves out cost-of-living increases for workers. The contract provides for up to 6,400 new jobs, the vast majority of which are expected to be lower-wage positions.
However, GM’s chief labor negotiator, Cathy Clegg, said the company isn’t required to fill the new jobs if demand drops and the company needs to cut production.
“In these uncertain economic times, we were able to win an agreement with GM that guarantees good American jobs at a good American company,” said Joe Ashton, the UAW’s top GM official. “Now that GM is posting strong profits, our members, as a result of this agreement, are going to share in the company’s success.
Aneil
