General Motors (GM) is reported to have reached a preliminary agreement on wages with the United Auto Workers (UAW) union, an important step towards resolving a gruelling strike in the US that has lasted six weeks. This follows similar settlements at Ford and Stellantis, the maker of Chrysler, the other two vehicle manufacturers impacted by the industrial action.
The strikes marked a significant moment in union history, as nearly 50,000 workers and multiple sites participated in the action, the first to simultaneously target all three companies. The tentative agreement was met with approval by President Joe Biden, who commented, “I think it’s great.”
Notably, Biden had previously shown his support for the workers’ cause by visiting a picket line at the onset of the strike, a move thought to be a first for a sitting US president. Although reports of the deal have emerged, neither GM nor the UAW have provided immediate commentary or disclosed the exact terms.
Ford and Stellantis had consented to approximately 25% wage increases over the four-year period of the new contract, along with other significant worker-centric changes. These included facilitating the transition of “temporary” employees to full-time status, thereby qualifying them for full benefits.
These agreements are now set to be presented to the workers for their approval. Moody’s, the credit rating agency, has projected that such a deal could result in additional costs exceeding $1bn for each vehicle manufacturer.
The UAW president, Shawn Fain, adopted a tough stance during the negotiations, framing the car workers’ struggle as part of a broader battle against the “billionaire class”. In a departure from past practices, Fain regularly shared public updates on the discussions, including a dramatic moment where he publicly tore up a company proposal during a social media broadcast.
