General Motors (GM) and the United Auto Workers (UAW) union have reached a tentative agreement, bringing an end to the first simultaneous strike against the Detroit Three automakers. The strike, which lasted for more than 40 days, resulted in record wage and benefit increases for the workers.
While the details of the agreement with GM were not immediately disclosed, it follows similar agreements reached with Ford Motor and Chrysler owner Stellantis. These agreements mark significant victories for auto workers, who have endured stagnant wages and concessions since the 2008 financial crisis.
Nearly 50,000 workers, out of a total of nearly 150,000 union members, participated in the series of walkouts that began on September 15. The UAW employed an escalating strategy of targeted strikes, causing billions of dollars in losses for the Detroit Three and their suppliers.
According to sources, the GM workers will return to work after an official announcement of the agreement. However, a GM spokesperson declined to comment on the matter.
Talks between GM and the UAW had stalled on Saturday due to issues such as pensions and the speed at which temporary workers would be given permanent positions.
The UAW workers at the Spring Hill complex walked off the job on Saturday, even as UAW President Shawn Fain and the top negotiator at Stellantis, Rich Boyer, were preparing to announce contract terms at the Chrysler parent.
The three tentative deals represent a victory for the UAW’s strategy of bargaining with all three automakers simultaneously, using the threat of strikes to prompt a bidding war among the companies. This approach helped secure record-setting pay and benefit gains for the workers.
Now, UAW President Fain must ensure that the contracts are ratified by the rank-and-file members. The ratification process began on Sunday with meetings between Fain and leaders of Ford-UAW local unions.
For the first time, the UAW employed a strategy of keeping most members working while slowly expanding the strike, thus allowing them to accumulate strike funds. Fain repeatedly criticized the Detroit Three automakers for prioritizing executives and investors over workers and emphasized that the UAW’s success would benefit blue-collar workers across the country.
In response to the news, GM’s shares rose by 0.9% in Monday trading, while Ford’s shares fell by 0.7% and Stellantis’ shares remained flat in Milan.
The UAW strike began at less significant plants and gradually spread to the most profitable factories that produce pickup trucks and SUVs, intensifying the impact. The momentum towards reaching agreements accelerated after UAW workers went on strike at three highly profitable factories.
The UAW achieved substantial gains in pay and retirement benefits, as well as rolling back concessions made in previous contracts over the past 15 years.
The Detroit automakers argued that the UAW’s demands would significantly increase costs and put them at a disadvantage compared to non-unionized companies like Tesla and Toyota Motor, especially as demand for electric vehicles has slowed down.
Both GM and Ford recently announced plans to slow down their electric vehicle production due to decreased demand.
The agreement between GM and the UAW marks a significant milestone in the negotiations, bringing an end to a long and costly strike for both parties involved.
