GM Says UAW Contract Raises Labor Costs $215 Million by 2013

General Motors Co. said its new labor contract will cost the company $215 million over the next three years as it raises wages for entry-level employees and buys out its most expensive laborers.

Chief Executive Officer Dan Akerson told analysts during a conference call that the new contract keeps GM competitive with only a marginal boost to its $5 billion a year labor tab. Wage increases for entry-level workers, $5,000 signing bonuses and other benefits add up to $675 million through 2013. GM got $460 million in savings to partially offset pay increases, the company said.