UAW announces deal with General Motors that tentatively ends strikes against Detroit automakers

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UAW announces deal with General Motors that tentatively ends strikes against Detroit automakers
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The deal follows the pattern set with Ford last week and Jeep maker Stellantis over the weekend.

David Barger stands with other workers near the General Motors plant in Spring Hill, Tenn., after United Auto Workers Local 1853 announced a strike after 44 days of negotiations with GM, Sunday, Oct. 29, 2023. DETROIT — The United Auto Workers union said Monday that it reached a tentative contract with General Motors, the last of the Detroit three automakers to agree to a deal.

All three companies agreed to raise general wages by 25% for top assembly plant workers and add cost of living adjustments that would bring their pay increases to over 30% by the time the contracts end, said the people, who asked not to be identified because they weren’t authorized to talk publicly about the deal. Workers would get an immediate 11% pay raise upon ratification.

That didn’t happen, as workers at Spring Hill and about 18,000 others on strike at GM assembly plants and parts warehouses awaited official word of the agreement Monday from the union. However, workers were expected to start returning to work as early as Monday. “We were ready to continue if we needed to,” Huerta said. “And if we do turn it down, we’ll be ready to go back again.”

Spring Hill, where workers hit picket lines Saturday, is a key facility that would have brought down other GM factories had its workers stayed on strike. It produces the engines for vehicles assembled at nine plants as far afield as Mexico, plus the electric Cadillac Lyriq, GMC Acadia and two Cadillac crossover SUVs.

Wells Fargo Analyst Colin Langan estimated that the contracts would drive up the companies’ hourly total labor costs by about 30%, to $76.08 at Ford, $78.15 at GM and $75.63 at Stellantis. Analysts have said that foreign automakers with U.S. factories generally have hourly labor costs of $45 to $60, which includes what they spend on worker benefits.

Fain has repeatedly accused the companies of being greedy and lying, and said the days of the union working with them are over.

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