Photo: UAW on Twitter / autoevolution edit
General Motors is the last of the Detroit Three to sign an accord with the Union of Auto Workers (UAW). Striking methodically proved to be the right strategy, despite many claiming that employees shouldn't have caused trouble as the companies were struggling to catch up to Tesla and completely electrify their portfolios. But here we are: nothing horrible happened, and employees scored a much-deserved win.
After six weeks of meticulous planning, the UAW scored its last win with the Big Three group by signing a tentative agreement with General Motors. The men and women who sat on the sidelines or joined the picket lines are now awaiting instructions to go back to work.
The union obtained a 25% wage increase for salaried and hourly workers over the next four years, plus the cost-of-living allowance (COLA). New hires will see a 70% increase in pay (from $18 to $30 per hour) thanks to the new deal, while those earning the maximum rate will also get a 33% raise. That should take them from $32.32 to $42.95 per hour.
The UAW also obtained the elimination of tiers, which means people working at various locations will earn similar income. Upon ratification, some workers who were previously stuck on a lower wage level will receive an immediate raise of up to 89%.
GM has many temporary workers on its payroll. Those with at least 90 days of employment will become full-time "senior" employees with complete rights. For some, that translates into a raise that more than doubles their current income.
There will also be ratification bonuses for all team members, a new holiday, two weeks of paid parental leave, improved health benefits, and profit sharing available to temporary workers.
The UAW says that the value of the gains obtained through the new deal equates to four times the raises obtained via the 2019 Collective Bargaining Agreement.
It remains to be seen what the full agreement with GM includes because, for now, it looks like the behemoth led by Mara Barra conceded less than Ford and Stellantis. The full details aren't out yet, but the official documents will soon reach members because they will have to vote on all the changes.
UAW President Shawn Fain said he is convinced this deal "squeezed every last time possible out of GM." If the agreement is voted and ratified, the following negotiation is scheduled for 2028.
"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," said Mary Barra.
Finally, operations should return to normal as the UAW leadership said workers would receive indications to go back to work.
It's a new era for the Detroit Three and their employees. Let's see what that means for all-electric vehicles made in the US.
The union obtained a 25% wage increase for salaried and hourly workers over the next four years, plus the cost-of-living allowance (COLA). New hires will see a 70% increase in pay (from $18 to $30 per hour) thanks to the new deal, while those earning the maximum rate will also get a 33% raise. That should take them from $32.32 to $42.95 per hour.
The UAW also obtained the elimination of tiers, which means people working at various locations will earn similar income. Upon ratification, some workers who were previously stuck on a lower wage level will receive an immediate raise of up to 89%.
GM has many temporary workers on its payroll. Those with at least 90 days of employment will become full-time "senior" employees with complete rights. For some, that translates into a raise that more than doubles their current income.
There will also be ratification bonuses for all team members, a new holiday, two weeks of paid parental leave, improved health benefits, and profit sharing available to temporary workers.
The UAW says that the value of the gains obtained through the new deal equates to four times the raises obtained via the 2019 Collective Bargaining Agreement.
It remains to be seen what the full agreement with GM includes because, for now, it looks like the behemoth led by Mara Barra conceded less than Ford and Stellantis. The full details aren't out yet, but the official documents will soon reach members because they will have to vote on all the changes.
UAW President Shawn Fain said he is convinced this deal "squeezed every last time possible out of GM." If the agreement is voted and ratified, the following negotiation is scheduled for 2028.
"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," said Mary Barra.
Finally, operations should return to normal as the UAW leadership said workers would receive indications to go back to work.
It's a new era for the Detroit Three and their employees. Let's see what that means for all-electric vehicles made in the US.
We have a tentative agreement at GM.#StandUpUAW pic.twitter.com/UtaWZJurEW
— UAW (@UAW) October 30, 2023
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