U.S. Auto Workers Union Reportedly Reaches Tentative Deal With GM

Published on October 30, 2023 in News by AFP

The US auto workers union has come to a tentative agreement with General Motors on a new labor contract Monday, said media reports, paving the way to ending a six-week strike on major car manufacturers.

The GM deal makes it the final "Big Three" automaker -- after Stellantis and Ford -- to reach an agreement with the United Auto Workers (UAW) union.

The UAW launched the strike on September 15, marking the first simultaneous work stoppage of the three carmakers. Workers were pushing for higher wages and other improvements, in particular relating to the transition to making electric vehicles.

Photo: SCOTT OLSON / Getty Images via AFP

Negotiations with GM took place on Sunday night and into the early morning, according to CNBC.

The deal's terms are generally similar to earlier agreements with Ford and Stellantis, including a 25 percent hourly pay raise and cost-of-living adjustments, Bloomberg reported, citing sources.

GM declined to comment when contacted by AFP, while UAW representatives could not immediately be reached.

At its height, the strike mobilized more than 45,000 of the UAW's 146,000 members working for the Big Three automakers.

"For months we've said that record profits mean record contracts," UAW President Shawn Fain said in an earlier statement, after the preliminary deal with Ford was reached. "And UAW family, our Stand Up Strike has delivered."

Photo: KAMIL KRZACZYNSKI / AFP

In September, US President Joe Biden joined striking workers on the picket line in Michigan, becoming the first sitting president to do so.

While the wage increases in the tentative agreements are lower than the 40 percent sought by Fain when UAW launched the strike, they are considerably higher than the nine percent rise Ford initially proposed in August.

The pacts still need to be ratified by workers in a vote, in a process that could take two weeks according to a source close to negotiations last week.

With the Ford and Stellantis deals, members were cleared to return to work at grounded factories.

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