UAW reaches tentative agreement with General Motors

Published 11:03 am Monday, October 30, 2023

United Auto Workers President Shawn Fain greets UAW members as they strike the General Motors Lansing Delta Assembly Plant on Sept. 29, 2023, in Lansing, Michigan. (Bill Pugliano/Getty Images/TNS)

The United Auto Workers has reached a tentative agreement with General Motors Co., its third deal struck with the Detroit Three automakers within a week, according to sources familiar with the situation.

GM declined to comment.

The GM deal is expected to follow the pattern set at Ford Motor Co. that was announced on Wednesday. That four-and-a-half-year deal features a 26% compounded wage increase, reinstated cost-of-living adjustments, a three-year timeline to the top wage and increased contributions to retiree pensions and current workers’ pensions and 401(k)s.

The deal at Ford resulted in more aggressive negotiations at GM and Stellantis NV, with the union announcing Saturday evening a tentative agreement with the maker of Chrysler, Dodge, Jeep and Ram vehicles.

President Joe Biden, asked about the UAW deal while boarding Air Force On on Monday morning, said, “I think it’s great,” and gave a thumbs-up, according to a pool report. “I’ll talk to you later,” he said, suggesting he’ll have more to say.

Consecutively, as it sent striking workers at Stellantis back to work, the union expanded its targeted “stand-up” strike against GM, sending workers to the picket line Saturday evening at its Spring Hill Assembly Plant that makes the Cadillac XT5, XT6 and all-electric Lyriq as well as the GMC Acadia.

Monday was the 46th day of the Detroit-based union’s walkout against GM. In addition to the Tennessee plant, workers are on strike at GM’s Wentzville midsize pickup truck and full-size commercial van plant outside St. Louis in Missouri, the Chevrolet Traverse and Buick Enclave plant in Delta Township outside Lansing and the full-size SUV plant in Arlington, Texas. Workers across the country at GM’s parts distribution centers also are on strike.

GM said Tuesday, before workers at Arlington Assembly plant walked off the job, that the strike had cost it $800 million.

The Ford and Stellantis deals included gains more than four times what workers received in the 2019 contract, according to the union.

GM met the 25% wage increase demand before the weekend, The Detroit News previously reported. Top production pay at GM is $32.32 per hour.

Ford’s and Stellantis’ deal include an immediate 11% wage increase upon ratification. At least at Stellantis, the further breakdown is 3% hikes in 2024, ’25 and ’26, and 5% in ’27. There also would be a $5,000 ratification bonus.

With reinstituted cost-of-living adjustments that were suspended in 2009, the union estimated at Stellantis the top wage would rise 33% to more than $42 per hour. The starting wage would increase by 67% compounded with estimated COLA, to more than $30 an hour.

Ford and Stellantis decreased the timeline to get to the top wage to three years from eight. They both agreed to the right to strike in the event of a plant closure, and Stellantis agreed to allow for the right to strike over product and investment commitments.

The UAW’s negotiations with GM and Stellantis intensified after Ford and the union reached a “historic” tentative deal to end a 41-day strike targeting selected plants at the Dearborn automaker, particularly the Blue Oval’s profit engine known as Kentucky Truck Plant, home to Ford’s Super Duty pickups and full-size Ford Expedition and Lincoln Navigator SUVs.

The UAW Ford National Council unanimously voted Sunday to send the tentative agreement there to the membership. The UAW Stellantis National Council is scheduled to meet on Thursday.

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