UAW Reaches Tentative Agreements with Major Automakers
The United Auto Workers (UAW) union signed tentative agreements on record contracts with Stellantis on October 28 and with General Motors (GM) on October 30, less than a week after reaching a tentative deal with Ford.
The proposed contracts with Detroit’s Big Three automakers—Ford, GM, and Stellantis—are now pending ratification by union members. However, workers are permitted to return to work during the ratification process, the UAW confirmed.
“All three agreements break records and better unite our union,” the UAW stated in a recent announcement.
Overview of the Strike
The strike commenced on September 15 as thousands of UAW members walked off the job at three factories amid stalled contract negotiations. Initially, the strike was limited to select assembly plants: GM’s in Wentzville, Missouri; Ford’s in Wayne, Michigan; and Stellantis’s in Toledo, Ohio.
Since the initial strike, more union locals have joined using the UAW’s “stand up strike” strategy, effectively expanding the impact on the automotive sector.
Production Impact
According to an October 19 report by Cox Automotive, the strike had affected production of approximately 43,000 vehicles per week out of the roughly 145,000 produced by these automakers. Nevertheless, car prices remain unaffected for the time being.
“For dealers and shoppers, there will be no impact for several more weeks to come,” stated Jonathan Smoke, Cox’s chief economist.
Reinstatement of Benefits
All three agreements feature reinstatements of benefits such as cost-of-living allowances and three-year wage progressions—lost benefits from the Great Recession—as well as the right to strike over plant closures.
“We are looking forward to having everyone back to work across all of our operations, delivering great products for our customers, and winning as one team,” remarked GM Chair and CEO Mary Barra.
Mark Stewart, North America chief operating officer at Stellantis, added, “We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers.”
Ford CEO and President Jim Farley also expressed his satisfaction, stating, “We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations. We are focused on restarting operations and calling employees back to work.”
