After a prolonged six-week period of labor strikes affecting the three largest US automakers, a resolution may be on the horizon. The United Auto Workers (UAW) union has reached a tentative agreement with General Motors (GM), marking a significant development in the ongoing labor dispute, according to AFP.
Joe Biden Praises the Agreement
President Joe Biden, who notably showed his support for striking employees by joining them on the picket line - an unprecedented move for a sitting US president - hailed the agreement as a "historic" pact that acknowledges the sacrifices made by autoworkers to sustain the industry.
CHICAGO, ILLINOIS - OCTOBER 7: A UAW sign lays in the ground near UAW members protesting in support of the labor union strike outside of the Ford Assembly Plant on the South Side on October 7, 2023 in Chicago, Illinois.
This GM deal follows similar agreements with Stellantis and Ford, signaling a potential conclusion to the strike affecting the "Big Three" automakers. The labor action, initiated by the UAW on September 15, marked the first simultaneous work stoppage across all three companies.
The primary demands of the workers included higher wages and improvements, particularly concerning the shift towards electric vehicle production.
The UAW expressed satisfaction with the GM agreement, stating that it has translated record profits into a record contract. This deal called for substantial base wage increases, surpassing those received by GM workers in the past 22 years.
These increases are set to continue through April 2028, with cost-of-living adjustments contributing to an overall wage hike of 33 percent, bringing the top wage to over $42 an hour.
Additionally, the agreement entailed the elimination of certain wage tiers and incorporated significant worker groups, such as those at Ultium Cells, into the master agreement.
The UAW noted that the agreement also reinstated crucial benefits lost during the economic downturn of 2008-2009 and enhanced retirement provisions.
Read Also: UAW Strike Expands to GM Assembly Plant in Texas; 5,000 Union Members Walkout
GM Response
General Motors CEO Mary Barra expressed contentment with the tentative agreement, emphasizing that it acknowledged the contributions of the team while enabling continued investment in the company's future and the provision of quality jobs.
Barra also noted that GM eagerly anticipated the return of all employees across its operations. As the agreement undergoes the ratification process, GM workers are expected to resume their duties.
At the peak of the strike, more than 45,000 members of the UAW, out of a total of 146,000 employed by the Big Three automakers, were involved in the labor action.
UAW President Shawn Fain emphasized the significance of the record profits in securing record contracts, celebrating the positive outcome of the Stand Up Strike.
Although the wage increases in the tentative agreements are below the 40 percent initially sought by Fain, they represent a notable improvement over Ford's initial proposal of a nine percent rise in August.
Ford estimated that the strike had incurred approximately $1.3 billion in costs for the company. The tentative agreements reached with Ford and Stellantis will undergo a ratification vote by workers, a process anticipated to take up to two weeks.
Upon ratification, members will be permitted to return to work at the affected factories.
Related Article: Stellantis Cancels Planned Presentation at CES 2024 Tech Show Amid UAW Strike
