Oops -- my mistake! GM workers now offerered $12,500 over the next four years -- Tentative UAW Contract

Hi folks -- Am I the only one not thinking clearly? GM and the UAW have worked out a deal that will set a pattern for the other two Detroit Three that industry representatives, union leaders, and politicians are uniformly praising. The proposed deal, it is claimed will offer $2-3 raises to entry level line workers, a big bonus over four years, and purportedly save or create more than 6,000 jobs in U.S. factories while taking some work away from Mexico. It will also result in the re-opening of the Spring Hill, TN Saturn factory, making Senator Bob Corker very happy.

Given the near-death experience of the industry only two years ago, is GM going to make itself again non-competitive in the long run? How is UAW ownership of GM coupled with political involvement as a result of the bailout influencing matters in ways that may be detrimental over the long haul? Are we in a premature feeding frenzy?

However, there will no longer be a Job Bank.

And there will be 75K buyout offers to skilled trade workers who retire between 11.1.11 and 3.31.12.