An unprecedented six-week strike at the “Big Three” US automakers has concluded following a preliminary agreement reached by General Motors and the UAW union, following similar agreements at Ford and Stellantis. The UAW announced that GM, like its competitors, has agreed to a 25% increase in the basic wage over the four-year duration of the collective bargaining agreement.
President Joe Biden, who attended one of the worker-led protests demanding better wages during his reelection campaign, praised the “historic” agreements. These record-breaking deals reward auto industry workers who made significant sacrifices to keep the sector running during the 2009 crisis, noted the president.
At its peak, more than 45,000 workers participated in the strike, a strategic move where the UAW gradually increased the number of factories subject to stoppages seeking improved wage conditions since September 15. This marked the first time since the union’s establishment in 1935 that the Detroit “Big Three” faced a simultaneous strike.
The agreements, which include wage increases over the four years of the collective bargaining agreement, cost-of-living adjustments, social benefits, and improvements for retirees, need to be ratified by UAW members.
The UAW’s approach started with smaller plants and distribution centers for auto parts, eventually extending the movement to the major and “lucrative” factories of each group in Michigan, the birthplace of the US automobile industry. Ford reached a preliminary agreement after 41 days of the strike, and Stellantis followed suit three days later.
While the agreed-upon figures are lower than the 40% initially sought by UAW President Shawn Fain when the strike began, the deals are seen as significant victories for the workers, signaling a unified stance of the UAW across all three automakers.
GM expressed satisfaction with the preliminary agreement, emphasizing its commitment to investing in the future and creating “good jobs” in the US Wall Street responded positively to the resolution, with GM shares gaining 0.51%, while Ford (-1.96%) and Stellantis (-0.28%) experienced declines.