A recent comment to a post regarding retirement benefits on the official UAW Local 2250 Facebook page asked what did they get for their union dues? There are many answers to that question, but this article will focus on the general state of retirement benefits and more specifically retirement benefits provided to UAW members.
The AFL-CIO.org provides data on the difference among all Americans and access to retirement pensions.
Working people in a union are more likely to participate in an employer-provided guaranteed pension plan than working people without a union (54% compared to 8%).
Specifically, the UAW/GM Agreement defines the retirement benefits provided to members. Traditional members receive both a defined benefit pension and retirement healthcare after 30 years of service.
For Tier 2/ In Progression members the benefits have been evolving with each contract since 2007. Below is a comparison of the current benefits package to those of the average non-union worker. The difference can be described as non-union dues.
The 2023 UAW/GM National Agreement stipulates the company will contribute an amount equivalent to 10% of straight-time wages to these members 401k plan. There is no requirement for the member to contribute any portion of their take-home pay to obtain a “match” from the company. Let’s run the numbers to determine what these members get for their union dues. The first example will compare this benefit to a worker with no 401k plan or one which requires the employee to contribute a certain amount from their pay before the employer will “match” with a contribution. That only works if the employee can afford to contribute.
401k
This comparison will use the base wage for a production worker at GM. Of course, incentive pay such as shift premiums and Team Leader pay would increase the member’s wage. The base wage as of Sept.15, 2025 is now $38.07 with a Cost-of-Living adjustment of $1.10 per hour added for a total of $39.17 per hour. Here we go…
$39.17 x 40 hours = $1,566.80 per week.
$1,566.80 x 10% = $156.68 401k contribution p/week
$156.68 x 4 weeks = $626.72 401k contribution per month.
Now let’s look at union dues:
$39.17 x 2.5 straight-time hours = $97.92
Subtract the monthly union dues from the monthly 401k contribution to see what the member gets for their union dues…
$626.72 – $97.92 = $528.80!.
There is the answer regarding what the member gets for their dues dollar in retirement benefits. That $528.80 could also be called the non-union dues or what they are losing by not being in a union.
Sure, that is a big number but what if a worker has a 401k and can afford to contribute part of their take-home pay and have the company provide a matching amount?
The latest data reveals only 56% of workers have a 401k. That said, let’s run some numbers using a common program for those that do such as the employer will contribute 50% of the first 6% an employee contributes. Cutting through the jargon this means the employer contribution is 3% if the worker can afford to save 6% of their take-home pay. Here we go….
$39.17 p/hour x 40 hours = $1,566.80 per week
$1,566.80 x 3% employer contribution = $47.00 employer contribution
$47.00 x 4 weeks = $188.00 employer contribution per month.
Not bad, but what is the difference between the UAW plan and the average plan?
UAW/GM 401k monthly 401k contribution $626.72
Less Union Dues 97.92
Monthly contribution after dues $528.80
Minus Average Monthly 401k contribution $188.00
The 401k union advantage is $340.80 per month!
$340.80 per month over and above the members union dues! That is a lot to lose, that is a lot of non-union dues.
Of course, union dues also result in 11% higher wages, better health insurance coverage and other benefits which we will detail in future articles.
