Home » US Employment News » UAW holds off strike as talks progress with Detroit automakers

UAW holds off strike as talks progress with Detroit automakers

By Nithya Bose in US Employment News, posted October 9, 2023

The United Auto Workers has scrapped further walkouts by automakers after progress in contract talks with Detroit majors.

UAW President Shawn Fain said a last-minute decision spared a profitable GM SUV factory in Texas from striking.

General Motors agreed to incorporate battery factories into the union's primary labor agreement.

This historic strike, the first to simultaneously affect all three automakers in the UAW's 88-year history, has entered its fourth week.

Around 25,000 factory workers participated in picket lines across five assembly plants and numerous parts distribution centers.

Wage raises and retirement benefits are central topics in the negotiations.

However, the automakers' plans to invest billions in new US battery plants have hung over the talks.

Union leaders have sought unionization of these facilities due to concerns over potential job losses and reduced wages in the transition to electric vehicles.

GM's decision to include the battery plants in discussions allows for a more direct examination of pay and benefits for their workers.

Although negotiations are ongoing, Fain revealed that Ford has proposed a 23 percent wage increase, with Stellantis and GM remaining approximately 20 percent.

Stellantis and Ford have also agreed to provide cost-of-living adjustments to align with inflation.

After a week of intensifying talks, the UAW chose to forgo additional strikes across all three automakers.

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This development pressures Ford and Stellantis to reconsider their positions regarding the battery plants.

GM's inclusion of these facilities marks a significant shift in approach.

The UAW's strategy during this strike has been distinctive, focusing on specific facilities and factories across the three automakers rather than striking all operations at one company.

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This approach has maintained the strike fund, garnered nationwide attention, and involved members nationwide while keeping the automakers attentive.

The strike has also led to layoffs of at least 7,000 workers at the auto companies and their suppliers.

Car manufacturers worldwide are accelerating the construction of battery factories to support the growing demand for electric vehicles.

Stringent emissions regulations and the success of Tesla and Chinese electric car manufacturers influence it.

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