Thu. Feb 22nd, 2024

From today’s Reuters:

General Motors (GM.N) and the United Auto Workers (UAW) have reached a tentative agreement, they said on Monday, with its members winning record pay hikes to end six weeks of a coordinated strike against the Detroit Three automakers.

The accord follows deals reached in the last few days by the union with Ford Motor (F.N) and Chrysler-owner Stellantis (STLAM.MI), in what amounts to significant victories for auto workers after years of stagnant wages and painful concessions made by the union following the 2008 financial crisis.

The new contracts will significantly raise costs for the automakers. The companies and some analysts have said the deals will place the Detroit Three at a disadvantage compared with electric-vehicle leader Tesla (TSLA.O) and foreign brands such as Toyota Motor (7203.T) which are not unionized.

The UAW won from GM roughly the same package of wage increases to which it agreed with the other two automakers. This raises top pay for veteran workers by 33%.

GM workers will end their strike and return to work while the new contract is ratified, the union said in a statement. The company will make $2,500 in lump sum payments to retirees under the new agreement.

“GM is pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the U.S.,” said GM CEO Mary Barra.

“We are looking forward to having everyone back to work across all of our operations.”

Nearly 50,000 workers out of nearly 150,000 union members at the Detroit automakers eventually joined a series of walkouts that began on Sept. 15. The UAW’s strategy of escalating, targeted strikes cost the Detroit Three and suppliers billions of dollars.

Read the complete story here.

By Editor