GM, Last Of The Big Three, Reaches Deal With UAW, Raises Wages 25%

The final holdout among the Big Three carmakers has finally reached a deal with the UAW.

The New York Times reports:

“General Motors and the United Automobile Workers union reached a tentative agreement on a new labor contract on Monday, according to two people familiar with the matter, setting the stage for an end to the union’s six-week wave of strikes against the three large U.S. automakers.

The agreement comes days after the union announced tentative agreements with Ford Motor and Stellantis on new contracts. The three deals contain many of the same or similar terms, including a 25 percent general wage increase for U.A.W. members as well as the possibility for cost-of-living wage adjustments if inflation flares.

The tentative agreement with G.M., the largest U.S. car company by sales, requires approval by a union council that oversees negotiations with the company, and then ratification by a majority of its 46,000 U.A.W. workers.

The union’s contracts with the three automakers expired on Sept. 15. Since then, the union has called on more than 14,000 G.M. workers to walk off the job at factories in Missouri, Michigan, Tennessee and Texas, and at 18 spare-parts warehouses across the country. The most recent escalation of the strike came on Saturday, shortly after the union reached a deal with Stellantis, the parent company of Chrysler, Jeep and Ram. On that day, the U.A.W. told workers to go on strike at G.M.’s plant in Spring Hill, Tenn., that makes several sport utility vehicle models.

The strike has halted the production of some of G.M.’s most profitable vehicles, including the Cadillac Escalade S.U.V., the Chevrolet Colorado pickup truck and the Chevrolet Traverse S.U.V.

G.M. said last week that the strike had lowered its earnings by about $800 million, before interest and taxes, with part of the impact coming in the third quarter and most in the fourth quarter.”

For the rest of the story, visit The New York Times here.

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