UPDATE 2-GM promises additional U.S. investment to secure 3,300 jobs

(Adds UAW President's comments, background on UAW concessions)
By Bernie Woodall
DETROIT, Oct 28 (Reuters) - General Motors Co (N:GM) GM.N has
promised the United Auto Workers union it will invest an
additional $1.9 billion in its U.S. factories to secure 3,300
union jobs, and pay higher wages and bonuses under a proposed
four-year contract.
GM will also pay bonuses of up to $8,000 to nearly 53,000
UAW workers once they ratify the agreement, according to details
of the GM-UAW contract released Wednesday. The deal also
provides for 4,000 UAW workers to get $60,000 early retirement
packages.
The contract will give raises to both veteran and recently
hired union workers at the automaker's U.S. operations. Veteran
UAW workers at GM have not had an hourly pay increase in a
decade, but should get 3 percent base wage hikes in two of the
four years of the new pact, if it is ratified. Veterans will get
lump sum payments the other two years.
Workers hired since 2007 will for the first time have a
clear pathway to earning the top wage for veterans provided they
remain with the company for eight years.
Profit sharing formulas could pay handsomely for UAW members
at GM. Union workers at GM will get $1,000 for every $1 billion
in North American profit. GM North America has reported $8.3
billion in profit for the first nine months of 2015.
The GM contract and the contract agreed with Fiat Chrysler (N:FCAU)
Automobiles NV's U.S. operations are "very rich agreements," UAW
President Dennis Williams said Wednesday at a press conference.
The UAW made significant concessions to help the Detroit
automakers survive the Great Recession. GM and its rivals are
now generating robust profits from U.S. operations, and UAW
members have pressed for a bigger share.
GM's additional U.S. investment puts pressure on rival Ford
Motor Co F.N when the Dearborn, Michigan automaker's turn to
bargain comes. UAW leaders fear Ford plans to move production of
its Ford Focus small car to Mexico from a plant in Wayne,
Michigan.
Rank and file UAW members at GM will start voting on the
contract within the next few days, Williams said. The UAW needed
two tries to win ratification for a new contract at Fiat
Chrysler. urn:newsml:reuters.com:*:nL1N1212V3
Under the GM and Fiat Chrysler agreements, workers who are
hired at $17 an hour will earn progressively more until reaching
a top hourly wage of $30 an hour after eight years. The new
agreements eliminate a two-tier wage system established in
2007. urn:newsml:reuters.com:*:nL1N12M1R5