Here is when to expect GM's $50,000 buyout program for union workers to launch

General Motors hourly workers — who've been waiting since November to learn when they might take advantage of a $50,000 retirement program — will get some answers on Monday, according to a letter from United Auto Workers Vice President Mike Booth sent to union locals Thursday.

Additionally, the Detroit Free Press has learned that the first phase of the buyout program is expected to start March 14.

The letter, which was obtained by the Detroit Free Press, also said that on Monday, GM and the United Auto Workers will start communicating the process for which eligible employees, who once worked at GM's Lordstown Assembly plant in Ohio, can transfer back to that area to work for Ultium Cells LLC, the battery cells manufacturing joint venture between GM and LG Energy Solution.

"The union was successful in negotiating the staffing of all represented positions within Ultium Cells facilities with direct employees of GM being leased employees to Ultium Cells," wrote Booth, UAW vice president for the GM Department, in the letter. "This agreement also provides for transfer rights for certain eligible former Lordstown Assembly Complex members to return to Warren, Ohio, to work at the Ultium Cells facility."

The contract states that those eligible to return to Lordstown will receive the same pay and benefits they earn at the locations where they presently work.

Several hundred employees from Lordstown Assembly accepted transfers to other GM facilities when GM permanently idled the plant in 2019. Many who relocated have family in the Lordstown community and have said they want to return.

Developing a plan

In reaction to the letter, GM spokesman Kevin Kelly emailed the following statement to the Free Press: "We will begin rolling out details of our Special Attrition Program and Lordstown/Ultium Cells LLC transfer opportunities to employees next week. Our focus will be to share details on these opportunities with employees first.”

Booth thanked members in the letter for their patience while the union and GM worked out both programs. His letter did not provide specific dates or details of exactly when the first phase of the Special Attrition Program will start. But two people familiar with the plan said there is a brief training period for human resources personnel early next week, then the plan is expected to open to eligible members on March 14. The people cannot be identified because they are not authorized to disclose that information publicly.

"The International Union, UAW and General Motors will jointly develop a communications plan designed to explain to eligible employees their options," wrote Booth. "Beginning this Monday, March 11, 2024, communications, and details to Phase 1 of the (Special Attrition Program) offering will start being communicated to the membership."

Booth said the program will offer three time periods from January 2024 through the life of the contract, which ends in April 2028, a $50,000 lump sum pretax retirement incentive for traditional employees, who, "at the time of the (Special Attrition Program) offering, must meet the normal or early retirement eligibility requirements."

Delay is 'unacceptable'

Prior to each of the three time periods, GM and the union will agree on the "timing, size, and scope of the offering," according to the contract.

The news is welcomed by UAW members. As the Free Press reported last month, some union members were growing impatient with holding off on retirement to find out when GM would open up the bonus program. Meanwhile, GM's crosstown rivals Ford Motor Co. and Stellantis have already started their programs.

Stellantis, which makes Chrysler, Dodge, Jeep, Ram and Fiat vehicles, and Ford also agreed to a $50,000 buyout provision in their respective contracts with the UAW. In January, the Detroit Free Press reported the UAW-represented employees at Stellantis began receiving buyout offers and eligible employees have until Dec. 31 to accept the offer. Another lump sum deal will be offered in 2026.

Likewise, the Free Press reported on Jan. 23 that UAW-represented workers at Ford also began receiving $50,000 buyout offers. The window for eligible employees to sign up for that program was slated to run through March 1.

UAW Local 14 President Tony Totty, who represents the workforce at GM's Toledo Propulsion Systems plant, estimates about 200 of the 1,500 people there want to retire. On Thursday, he told the Free Press in a text message that Booth's letter was good news but that the information "took entirely too long" to get to members.

"We deserve an explanation on why there was such a big difference between Ford, Stellantis and GM's rollout," Totty said. "This delay is unacceptable!"

According to Booth's letter to union leaders last month, he said the holdup with GM was due to an accounting rule that may penalize the pension fund if too many people retire at once.

When asked about an accounting rule being the holdup, Kelly told the Free Press last month: "We are being thoughtful in how we execute the program to ensure we can continue to adhere to GAAP accounting rules related to our pension fund and meet our contractual obligations. We have no more details to share at this time."

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Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

This article originally appeared on Detroit Free Press: More info to come on GM's $50,000 buyout program for union workers