Workers from Ford, General Motors, and Stellantis have officially ratified new contracts with significant wage increases, ending a historic autoworkers strike at the three Detroit giants, according to an announcement from their union, the United Auto Workers (UAW).
Major Gains for Autoworkers
The UAW revealed that 64% of members across the three companies voted in favor of the contracts, marking the conclusion of the first-ever simultaneous stoppage at the three automakers.
CHICAGO, ILLINOIS - OCTOBER 7: UAW members attend a rally in support of the labor union strike at the UAW Local 551 hall on the South Side on October 7, 2023 in Chicago, Illinois. UAW president Shawn Fain joined members in solidarity with the ongoing strike.
UAW President Shawn Fain stated, "The members have spoken. After years of cutbacks, months of our Stand Up campaign, and weeks on the picket line, we have turned the tide for the American autoworker."
"The Stand Up Strike was just the beginning. The UAW is back to setting the standard. Now, we take our strike muscle and our fighting spirit to the rest of the industries we represent, and to millions of non-union workers ready to Stand Up and fight for a better way of life," he added.
The press release from UAW highlighted the significant gains achieved by the 150,000 UAW autoworkers at the Big Three, emphasizing the restoration of provisions sacrificed during the Great Recession. These include cost-of-living adjustments (COLA), annual bonuses for retirees, and the elimination of wage tiers.
Key Provisions of Agreements Between Big Three and Autoworkers
Key provisions of the agreements include substantial wage increases for all Big Three members, significant raises for tens of thousands of workers, and significant product and investment commitments from the companies. The contracts paved the way for a future of reindustrialization and increased working-class power.
1. Raises From at Least 33% to Over 160%: Members will receive raises of at least 33% over the agreement's lifespan, with some of the lowest-paid workers getting raises of over 160%. Immediate raises of over 40% are expected for tens of thousands of autoworkers upon ratification.
2. Faster Progression to Top Pay: A three-year wage progression to the top pay rate, down from eight years, has been secured at all three companies, restoring the progression in place before the 2011 contract.
3. Reopening Belvidere, Reinvesting in America: Stellantis has committed to reopening an assembly plant in Belvidere, Illinois, which was closed in February. Additionally, the company pledged to build a $3.2 billion battery plant at the location, employing over a thousand union workers.
4. A Just EV Transition: Commitments have been made by all three automakers to bring thousands of electric vehicle (EV) and battery jobs under the union's national agreements.
5. Improvements in Retirement Security: Retired individuals currently receiving benefits will now be entitled to yearly bonuses, marking the first instance in 15 years and resulting in a substantial $1.25 billion enhancement in their overall benefits. Employees hired before 2007 are set to experience a rise in their pension multiplier.
All six agreements, covering both hourly and salaried units at each of the three automakers, were ratified by the membership. The conclusion of these contracts follows a historical period of strikes, with the union successfully negotiating for improved conditions and benefits.
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