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GM violated terms of newly-agreed contract, UAW says

The United Auto Workers said General Motors decided to exclude a certain group of retirees from receiving a $500 lump-sum payment as agreed upon during negotiations.

TOLEDO, Ohio — United Auto Workers leadership is speaking out against General Motors, alleging the company violated the terms of its new contract with the union.

In a statement addressed to members Thursday, UAW Vice President Mike Booth detailed GM's alleged violation of the contract, which centered on a lump-sum payment the union bargained for retirees.

RELATED: GM becomes first major automaker to reach deal with auto workers union

The UAW said GM decided to exclude a certain group of retirees who receive a Delphi Benefit Guarantee from receiving a $500 lump-sum payment that was meant to be paid out according to the 2023 National Agreement between the union and company.

"The UAW is currently having discussions with General Motors and doing everything possible to rectify this situation," Booth said. "If we are unable to resolve the issue during these discussions, we will pursue all available contractual and legal remedies on behalf of the impacted Retirees and Surviving Spouses."

The president of UAW Local 14, Tony Totty, spoke with WTOL 11 regarding the accusations against GM.

"We hold our retirees sacred. They're on our wall. We fight for them because we wouldn't have what we have without them," Totty said. "If you promise them something and you don't give it to them, we're going to fight to get that for them."

The alleged breach of contract carries extra weight in the timing of it, according to Totty, with members anticipating the payment as bargained.

"They were told a specific day they could expect to receive it and it just didn't show up and that's not good around Christmastime," Totty said. "The company should not be Scrooge. Live up to your agreements."

WTOL 11 requested comment from GM but did not yet receive a response.

The full statement from UAW Vice President Mike Booth is below:

"During 2023 UAW-GM negotiations, the UAW successfully bargained a $500 Annual Lump-sum payment for eligible UAW-GM retirees. The first payment went out Friday, December 15, 2023. Due to administrative issues, some Retirees were inadvertently left off the initial list and will be receiving their $500 Lump-Sum payment on Friday, January 19, 2024.

The Company unilaterally decided to exclude a select group of UAW-GM retirees who receive a Delphi Benefit Guarantee "Top Up" benefit from receiving the $500 Lump-Sum payment. This decision by the Company is a violation of the 2023 National Agreement and, as you know, is contrary to the past practice established by the parties in 2015 when this same group received the bargained retiree payments along with all other UAW-GM retirees. The UAW is currently having discussions with General Motors and doing everything possible to rectify this situation. If we are unable to resolve the issue during these discussions, we will pursue all available contractual and legal remedies on behalf of the impacted Retirees and Surviving Spouses.

As always, In solidarity,
Mike Booth

Vice President and Director UAW General Motors Department"

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