(September, 28, 2011) DETROIT — “The agreement is a win-win for our employees and our company,” said GM CEO Dan Akerson today after striking a labor agreement with the United Auto Workers.

“It underscores the alignment between the UAW and the new GM in our efforts to drive long-term success, and gives all of our employees a direct stake in the quality of our products and our performance.”

General Motors today outlined details of the new labor agreement during a conference call with analysts and media. The agreement, which has been ratified by the UAW membership (65 percent production and 63 percent skilled trades), covers 48,500 hourly GM employees.

The four-year contract "preserves our break-even point in North America and protects our strong balance sheet," Akerson said. The agreement "is further evidence that this is really a new GM."

GM said the deal will protect its balance sheet by shifting current and future entry-level workers to a defined contribution pension plan, forgoing pension increases for existing retirees for the first time since 1953, and permanently eliminating the Jobs Bank that provided near full pay and benefits for laid-off workers.

The automaker said the deal also will produce $340 million in savings through 2013 with the elimination of free legal services for UAW members.

The UAW has said the contract will create or retain 6,400 jobs, including the reopening of an idled assembly plant in Spring Hill, Tenn. GM promised the UAW an investment of $2.5 billion in new products and plant upgrades under the pact.

During the briefing with analysts today, GM officials said future product programs and industry volumes will dictate how fast it adds jobs and capacity.

GM also agreed to give workers a $5,000 signing bonus to approve the contract, as well as $1,000 annual payments in 2012, 2013 and 2014 to offset inflation. It also raises wages for entry-level workers to $15.78, from $14, and to a maximum of about $19.28, up from about $16 in the previous contract.

GM has about 2,500 U.S. hourly workers classified as entry-level.

Sources: General Motors, Automotive News