UAW General Motors Modifications to 2007 Agreement and Addendum to VEBA Agreement é A message to UAW members at GM May 2009 Dear Brothers and Sisters. As we all know. General Motors is suffering through the most severe criss it has ever suffered. The Company has experienced unprecedented losses and $15 billion dollars of federal loans have already been necessary to keep the Corporation afloat. U.S. auto sales are at a 40-year low and GM will not make it through this downturn without additional government assistance fier a lengthy process that included congressional hearings and petitioning the White House, GM was granted initial federal loans by the Bush administration on December 19. 2008. As a requirement for additional federal assistance. GM was asked to provide the US Treasury Department a restructuring plan demonstrating a path to long term viability. On March 30th President Obama rejected GM's February 17 submission and required all stakeholders to make additional sacrifices. He also asked for Chairman Rick Wagoner’s resignation and set anew deadline of June | The Treasury's Auto Task Force moved into GM's headquarters in an effort to find deeper and quicker changes toGM’s US footprint. The shocking plan that resulted, highlighted by the elimination of 16 existing US facilities including the elimination of the Saturn, Pontiac and Hummer nameplates. levied severe and drastic cuts to the US workforce and UAW membership. Faced with this dire situation and realizing failure to meet the government requirements would surely mean the end of General Motors. your bargainers painstakingly put together modifications to the collective bargaining agreement to satisfy the Treasury Auto Task Force. For our active members these tentative changes mean no loss in your base hourly pay. no reduction in your health care, and no reduction in pensions. In addition. we were able to slow the import of vehicles coming from China and other foreign sources and put some of that work in two US plants originally scheduled to close. In the face of these hard times and financial realities we were required to negotiate changes to the VEBA with the goal of a funding structure that maintains the core principle that the VEBA must be funded in such a manner to provide as much protection as possible so that our retiree health care continues to be protected. Unfortunately. in this process our retirees are required to make difficult sacrifices as is explained later in the summary. Your negotiators worked hard and pushed for all stakeholders to share fairly in the necessary sacrifices to save GM. All salary employees and Company executives up to and including the Board of Directors and the CEO are making sacrifices. Dealers. supplicrs and bondholders are all contributing to this massive effort to keep the Corporation viable and sustain good jobs in the USA. While we realize the proposed viability plan requires painful. unprecedented sacrifices from UAW mem- bers. with your support we were able to divert thousands of vehicles scheduled to be imported from low wage countries including China to be assembled in an idled US GM facility. we maintained those product guarantees that are still available, and we negotiated new opportunities for UAW involvement in future business decisions. This document summarizes the tentative modifications to the 2007 agreement the UAW has reached with General Motors, and an Addendum to the agreementestablishing the Voluntary Employee Beneficiary Association (VEBA) trust for retiree health care. Considering the alternatives. we urge a “yes” vote in favor of ratification In Solidarity: Ron Gettelfinger Cal Rapson, Vice President President and Director, UAW-General Motors Department and the UAW General Motors National Negot ing CommitteeOvertime Upon ratification of the proposed ‘modifications, the time-and-half rate will begin after 40 compensated straight time hours. Saturday and Sunday premiums will be paid after 40 hours straight time compensation in the same work week including authorized Para- graph 109 Leave of Absence. Relief Time Break time has been reduced to 40 ‘minutes of relief time per eight hour shift and 50 minutes per 10 hour shif. COLA Cost-of-living adjustments will be suspended for the term of the modified sement to offset health care costs. Performance Bonus ‘The parties agreed to suspend pay ‘ment of performance bonuses to tradi tional employees scheduled for 2009 and 2010 to offser health eare costs Paid Holiday Plan To help offset health care costs. negotiators agreed to suspend the Easter Monday holiday in each of the remain- ing years of the current agreement. The holiday scheduled for Monday. April 5, 2010 will be suspended, as will Mon- day. April 25. 2011 Entry Level Al newly hired employees who star their employment prior to the expiration of the 2011 UAW-GM National Agree- ment on September I4, 2015 shall be hired as Entry Level employees ..No Enny Level emplovee shall ransition to traditional employee status dur ing that time. Upon the above stated expiration date, the umber of Entry Level employees above 25% ofthe tral UAW-GM hourly population, or less if the existing number of Encry Level em: ployeesis less than 23% (but not below 20%). shall be transitioned to traditional employee status by seniority. corporate- Wide. The ratio of entry level emplov £25 0 traditional employees established ‘on that date (not to exceed 25% nor be Settlement Agreement ‘The UAW and GM have agreed to the terms set forth in this agreement (including its artachments). This agreement shall con~ stitute an addendum to the 2007 UAW-GM National Agreement, With respect to the terms of the attached Memorandums of Understanding calling for suspensions of compensation or benefits. or other amendments to existing contractual provisions. the amendments and/or suspensions will last until the expiration of the 2007 UAW-GM National Agreement unless other expiration dates are specifically required by the Loan and Security Agreement | berween GM and the United States Treasury or. unless otherwise modified or terminated by the mutual agreement of the parties. beldy 20%), shal remain in effect for the life ofthe agreement ‘The “Production” and “Staring wage rates ae frozen at current levels and provisions for future Wage Formula Increases are suspended for the duration of the 2007 UAW-GM National Agree- ment. However. new hires wll continue to progress from the established staring rates t0 the fll production rate consis- tent with the MOU's provisions regard ing wages. The Performance Bonus payments for entry level employees are Suspended for the remainder of the 2007 UAW.GM National Agreement Temporary Flex Employees A new category of employees has been established tiled "Flex Employ- ees.” Flex employees may be utilized as parctime employees normally scheduled to work on Monday. Friday and Satur- day and other days/shifis to accommo- date special eiroumstances as they arse. Any flex employee needed for product launches or fluctuations due to transition in the workforce (special attrition) and ‘0 suppor temporary volume increases will require prior join agreement ofthe National Pates. Basic health care coverage willbe provided when al eligibility require ments are met. There wll be no eredit given toward aequiring seniority. Flex employees will be given priority for en- ty level job opportunities provided that they have worked 1040 hours and have an acceptable work record. Vacation Replacements ‘Tis memorandum suspends Appen dic A. Section Vill and Section X for temporary emplovees, Vacation replace- ments may no longer be approved by the local Union, bur must be reviewed withthe Local and Intemational Unions. No ex employees or vacation replace- ments will be used a plants with laid off members Independence Week Shutdown Period (IWSP) ‘The parties agreed to suspend pay ment ofthe Independence Weck Shut down Period. Two weeks of vacation | shutdown may be scheduled annually, Both weeks. if scheduled, would occur during any week berween Memorial Day and Labor Day with the local parties having additional scheduling options. The parties agreed thatthe notification requirements for the identifying desig. nated Plant Vacation Shutdown Weeks during the 2009 calendar year will be extended until thiry (30) days following the effective date of the Addendum, Vacation Payment of unused vacation entitle- ment will be discontinued effective in 2009, Effective immediately, employees will be required to utilize their entitle ment during the eligibility year in order to receive vacation pay. 40 hours of unused VR time may be taken as pay in lieu. However, the expectation is that all VR days will be utilized ‘The parties recognize that this change will result in greater numbers of em: ploees desiring vacation time off. In ‘order to accorimodate this, management has the ability to augment the workforce with temporary employees on an as needed basis. particularly during prime vacation time. ‘Due to modifications to Vacation Entitlement and Vacation Time Of provisions in the 2007 UAW-GM National Agreement which may impact ‘an employee's ability to receive their fully allotted vacation time off. ic has been agreed on a one time basis that the provisions of Paragraph 202 (h) be tem porary suspended to allow employees | to apply for vacation time off during the first thiry (30) days following ratfica. tion of this addendum, Employees will be given a written disposition as soon as possible but not later than thirty (30) ‘days thereafter, Direct Deposit In order to provide the convenience of immediate availability, added safety and significant efficiencies, effective ‘August 1, 2009, all payroll drafs will be electronically deposited into each employee's account at his her designatedEmployee Placement Appendis A area hire placement procedure remains intact with a modifi ation in the order of jb offer allowing employees from closed plants. laid off members and plants with excess mem bers with higher placement priority. Laid off shilled trades employees within the area hire will be made pro- Uietion job offers in inverse seniority order whether or not they have previous- | ly eld production jobs with GM. This will occu after all area hire offers and offers to any volunteers in the extended trea hire that have been exhausted Skilled trades emplovees placed into production jobs shall be paid the ap- Dlicable wage rate fr ther skilled trades Sassificaton and eetain ther rights to Tetum t0 shilled trades jobs for which they are qualified by previously held classifications ‘New process modifies extended area hire placement after volunters have been exhausted. The process establishes 3 geographic areas to minimize the distance that members would be forced to relocate as follows The lowest seniority traditional pro- duction employee a a closed location will be given the option co either accept the job offer atte plant that is hiring in | their geographical area or g0.0n leave of absence with no benefits. | “Lowest seniority traditional production employee on layoft will have Options: Either accept job offer athe plant that is hiring in their geographical lca or go on leave of absence with n0 benefits but to retain recall rights to their hone plant only The lowest seniority lid off tadition- a production employee from a closed plant within the next closest ezion will be made offer on te samte conditions as above followed by the lowest enionty laid ff production employee Work Practices ‘The National Parties discussed loca tions that haven't reached new local agreements and those that have ratified local agreements, but haven't achieved General Motors’ 2007 competitive op- crating agreement rating of ninery-three I Job Security Program Suspended ~ Appendix K ‘The parties agreed to suspend certain provisions of the Job Security Program that place employees in Protected Status. All employees currently in Protected Status have been placed on layoT and employees henceforth cligible for Protected Status also will be placed on layofT and will be eligible for the Supplemental Unemployment Benefits (SUB) and Transition Support Program (TSP) benefits outlined below 2 sdpplemental Unemployment Benefit (SUB) Modified, Transition Support Program (TSP) Established The proposed agreement modifies the SUB and establishes a new TSP ac- cording to the following schedule. co) Tes ae (se ‘The Transition Support Program pays 50 percent of the employee's gross ‘weekly wages for a 40-hour work week. State unemployment insurance will be deducted from TSP payments. there willbe no offsets of any additional earings ‘Members may choose to op out ofthe TSP and will receive the remaining TSP liability and $10,000. This choice must be made prior tothe employee becoming eligible for TSP benefits, Ifthe member chooses this option, he or she will forfeit all recall rights. but their remaining allotment of health care coverage continues. Health care continuation for laid-off workers remains unchanged from the 2007 National Agreement, Coverage is based on years of senionty. accordingly. SCHEDULE OF CONTINUANCE OF COVERAGES FOR EMPLOYEES LAID OFF AS DEFINED UNDER THIS PROGRAM Re ees edu for: which coverage will be Cit ace) Wa ume hess) : i 2 aes Less than 1 1 ‘but less than 2 2butless than 3 3 but less than 4 4 but less than 5 10 Sbutlessthan 10 13 ~ 10 and over a 2