GM, UAW Reach Tentative Deal, Ending Six-Week Autoworkers Strike


After six weeks of widespread strike action, General Motors (GM) and the United Autoworkers (UAW) have reached a tentative agreement, bringing an end to the labor dispute that impacted the Big Three U.S. automakers and left nearly 50,000 workers on picket lines.

Key Takeaway

The tentative agreement between General Motors and the United Autoworkers brings an end to the six-week strike that significantly impacted the U.S. automotive industry. Once ratified, the contracts with GM, Ford, and Stellantis are expected to deliver unprecedented gains for autoworkers, including significant pay increases and future electric vehicle programs.

Surprising Expansion of the Strike

On Monday, the UAW expanded the strike against GM to its Spring Hill, Tennessee factory, catching industry observers off guard. While GM has not officially confirmed the deal and declined to comment, sources familiar with the matter revealed that a tentative agreement was reached on Monday morning.

Tentative Agreements with Ford and Stellantis

Prior to the agreement with GM, the UAW had already reached tentative agreements with Ford and Stellantis, the automaker that owns Jeeps, Ram, and Chrysler. However, all three agreements must still be approved by UAW-represented workers through ratification votes.

The details of the GM and Stellantis agreements are still unclear, but the UAW has made its bargaining contract with Ford available to the public. If the agreements with GM and Stellantis align with the Ford agreement, it would mark a momentous accomplishment for autoworkers, resulting in historic and record-breaking contracts.

Unprecedented Gains for Workers

The Ford agreement already promises gains four times higher than those stipulated in the 2019 contract. The UAW emphasized that the gains in each year of this agreement outweigh the total gains made in the previous contract, with more general wage increases than Ford workers have experienced in the past 22 years combined.

The Ford agreement ensures that the lowest-paid temporary workers receive a 150% pay increase, while cost-of-living adjustments will raise the top rate for production work to over $42 per hour by 2028 and over $50 for skilled trades, amounting to a more than 30% raise. The tentative bargaining agreement also includes other victories for UAW workers, such as the inclusion of future electric vehicle programs.

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