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GM and UAW reach tentative deal to end Detroit strikes
https://www.whatjobs.com/news/usa/us-employment-news/gm-and-uaw-reach-tentative-deal-to-end-detroit-strikes
By Nithya Bose in US business news, posted October 31, 2023
General Motors (GM) has reached a tentative agreement with the United Auto Workers, ending a six-week-long strike at Detroit automakers.
The deal is still subject to ratification by union members.
It covers battery workers from GM's Ultium Cells joint venture and a new "subsystems" division in the UAW's master agreement with the automaker.
Read More: UAW Reaches Deal With Stellantis As GM Strikes Expand
GM is the sole Detroit automaker with a unionized joint venture battery plant, making this a pivotal agreement that sets industry standards.
The UAW stated that this new tentative deal represents a significant leap forward, featuring a 25 percent wage increase for most workers.
Agreement follows similar deals reached by Ford and Stellantis.
This makes it one of the most substantial and lucrative contracts for the UAW in recent years.
This agreement follows similar deals reached by Ford and Stellantis.
Ford's initial agreement serving as the model for the headline economic aspects.
The strikes have caused major losses for GM, Ford, and Stellantis, costing them billions of dollars in lost production.
Read More: Ford Reaches Tentative Deal With UAW With Record Pay Raises
GM alone estimates that the strike has resulted in an approximately $800 million financial setback.
These labor agreements signify a remarkable departure from the past.
The UAW adopted a more assertive and strategic stance during these negotiations.
It bucked the recent bargaining practice with each automaker separately.
It is unclear how significantly these deals will raise labor costs for the automakers.
They have expressed concerns that conceding to all of the union's demands could impact their competitiveness and long-term sustainability.
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Deutsche Bank has projected that the overall cost increase under the agreement could reach $6.2 billion over the contract term for Ford, $7.2 billion for GM, and $6.4 billion for Stellantis.
President Joe Biden has commended these agreements, recognizing the sacrifices made by autoworkers during the financial crisis over a decade ago.
He emphasized the importance of ensuring that the "Big Three" automakers continue to lead the world regarding quality and innovation.
The tentative agreement with GM marks the conclusion of a period of labor unrest in the automotive industry, bringing relief to workers, the companies, and the broader economy.
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