The General Motors reached an agreement with UAW (United Auto Workers). And so the third giant from Detroit, after Ford and Stellantis, has also signed a agreement preliminary with the U.S. Auto Workers Union, ending a month and a half of strike, costing billions of dollars to the "big three" of Detroit (alone they represent almost half, 40%, of the cars circulating in North America). A significant victory for auto workers after years of stagnant wages and painful concessions made by the union following the 2008 financial crisis. But what's in the deal between the UAW and GM? Let's take a step back.
Auto strike: GM also gives in
La The proposal of the sindacati was accepted by GM after the union involved the Spring Hill plant in the state of Tennessee in the protest over the weekend. In total, about 18 GM workers were on strike at more than a dozen workplaces across the country. A move that would have led to further losses for the American automotive giant, losses that so far amount to over 800 million dollars. And in the end he had to capitulate. The preliminary agreement, which must be ratified by the respective works councils, as reported by Reuters provides conditions similar to those obtained with Ford e Stellantis: 25% increase in salaries to be "spread" over four years, with an immediate increase of 11%, and automatic increases linked to the cost of living.
Ford and Stellantis agreement
The union's first provisional contractual agreement, reached with the Ford on Oct. 25, plans record pay increases of more than 30%, with additional cost-of-living increases by the contract's April 30, 2028. Ford's lowest-paid workers will receive an immediate 88% raise. There remuneration maxim will rise to $42,60 an hour, while a $ 5.000 bonus for ratification and a $1.500 voucher towards the purchase of a new vehicle. The deal also includes job security agreements, full-time jobs for temporary workers and a “pathway” for future EV (electric vehicle) workers to be covered by the union. Full details of the October 28 tentative agreement with Stellantis, maker of the Jeep and Chrysler brands, have not yet been disclosed, although the automaker matched Ford's wage increases and agreed to reopen a dormant assembly plant, a big victory for the union.
Highlights of the UAW deal with General Motors
The details of the agreement between workers' representatives and General Motors have not yet been disclosed in detail. But here are some of the essential terms highlighted by UAW leaders:
- The agreement provides for basic salary increases of 25% until April 2028 and will increase, thanks to the COLA (Cost of Living Adjustment) revaluation mechanism, cumulatively by 33%, up to over $42 an hour. Currently, high-level workers earn about $31 an hour.
- The wage for the lowest-paid entry-level workers will increase by 70%, (with COLA, cost-of-living adjustment), to above $30 an hour.
- The agreement also brings two key groups into the “UAW GM Master Agreement”: Ultium Cells and GM Subsystems LLC, plants that produce batteries, fundamental elements for the new future production of electric cars.
- Improves pensions for current retirees, for workers with pensions and for those who have a 401(k) plan: it is a supplementary pension fund with contributions from the worker and the company he works for.
- GM agreed to make five $500 payments to current retirees and surviving spouses.
- The agreement restores key rights lost during the Great Recession, including cost-of-living allowances (COLA) and three-year contract renewals, as well as eliminating pay splits between young and old.
- Right to strike for plant closures.
Is the US auto workers' strike about to end?
The strikes organized by the UAW in the USA against the big three automotive companies are therefore coming to a close. At least for Stellantis the chapter, which remained open, of the strikes in Canada. The Canadian auto union Unifor and the automaker Stellantis reached a pre-agreement on Monday morning, putting an end to a strike that began after midnight on Sunday. More than 8.200 workers had participated in various plants in the province of Ontario where the two largest assembly plants for the Chrysler sedan, minivan and Dodge Challenger are located. The agreement, which has yet to be ratified, comes the day after the one reached in the USA with the Uaw auto union. On the premarket Stellantis is gaining 1,6%. The agreement between Unifor and GM in Canada needs to be verified.
