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2. 2023 UAW Negotiations
UAW, GM REACH TENTATIVE CONTRACT DEAL; UNION SAYS STRIKE ENDING
GM WAS THE LAST OF THE DETROIT 3 TO AGREE TO TERMS WITH THE UNION, WHICH STOPPED
PICKETING FORD MOTOR CO. LATE WEDNESDAY AND STELLANTIS ON SATURDAY AFTERNOON.
October 30, 2023 09:34 AM updated 14 hours ago
Lindsay VanHulle
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LINDSAY VANHULLE
GM pickets were still on duty Monday afternoon at the assembly plant in Delta
Township, Mich.
The UAW ended its strike against the Detroit 3 on Monday after reaching a
tentative contract agreement with General Motors that it said will more than
double some workers’ pay immediately and raise starting wages by 70 percent by
2028.
The deal increases top wages by a total of 25 percent over the next four and a
half years, matching the union’s agreements with Ford Motor Co. and Stellantis.
Including restored cost-of-living adjustments, the UAW said veteran workers
would see their pay rise about 33 percent over the course of the contract, to
$42.95 an hour.
UAW President Shawn Fain announced the deal two days after ordering GM workers
in Spring Hill, Tenn., to join the strike. He called the weekend’s surprise
expansion of the walkout “the knockout blow” in negotiations with the automaker.
“The result is one of the most stunning contract victories since the sit-down
strikes in the 1930s,” Fain said in a video posted Monday afternoon. “We were
relentless in our fight to win a record contract, and that is exactly what we
accomplished.”
GM was the last of the three automakers to agree to terms with the union, which
stopped picketing Ford Motor Co. late Wednesday and Stellantis on Saturday
afternoon. The tentative deal came on the 46th day of the strike, after Fain met
with GM CEO Mary Barra and GM manufacturing chief Gerald Johnson from Sunday
into early Monday, a source close to the talks told Automotive News.
In a statement, Barra said: “GM is pleased to have reached a tentative agreement
with the UAW that reflects the contributions of the team while enabling us to
continue to invest in our future and provide good jobs in the U.S. 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.”
The UAW said the deal value is more than four times what it achieved in its 2019
contract with GM, with more in base wage increases than in the past 22 years.
Hourly starting wages, with COLA included, would top $30 per hour. Temporary
workers with at least 90 days of experience would get immediate raises ranging
from 51 to 115 percent, Fain said.
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Temporary workers who have worked for GM for nine months will automatically
convert to full-time employees with seniority, Fain said.
The UAW said GM had agreed to eliminate a lower pay scale used for workers in
its Customer Care and Aftersales division, at GM Components Holdings and at its
Brownstown battery facility in Michigan. UAW-represented salaried workers will
receive a general wage increase equal to that of hourly workers, the first time
that has happened since they organized in the 1990s.
Ultium Cells LLC, GM’s electric vehicle battery joint venture with LG Energy
Solution, and GM Subsystems LLC also will be brought under the national
agreement, the UAW said.
“After they said for months that it was impossible, we did the impossible,” Fain
said of the Ultium Cells provision. “The significance of this cannot be
overstated. Right now, the future of our industry is being defined.”
Retirees and surviving spouses will get five $500 payments, the first
compensation they have received in more than 15 years, the union said.
The UAW said it also won the right to strike over plant closures, similar to
Ford and Stellantis, and reduced the wage grow-in period from eight years to
three.
The deal is subject to ratification by GM's 46,000 UAW members, after the
national council of UAW leaders meets in Detroit on Friday to review it. A
Facebook Live address from UAW leadership is possible Friday evening to present
the agreement in detail to members, Fain said.
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fights for a self-described “audacious and ambitious” list of demands from Ford,
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the talks until the final deal is ratified.
Coverage >
In a surprise move, the UAW on Saturday evening added Local 1853, which
represents workers at GM’s manufacturing complex in Spring Hill, Tenn., to the
strike.
GM builds the electric Cadillac Lyriq crossover, the GMC Acadia and the Cadillac
XT5 and XT6 in Spring Hill. That followed an earlier strike expansion on Tuesday
to include 5,000 GM workers who build highly profitable full-size SUVs in
Arlington, Texas.
In addition to the GM workers on strike, nearly 2,500 employees at other GM
plants were temporarily laid off as a result of the work stoppages, which have
cost the company more than $800 million.
46 days
Agreements were reached with Ford on the 41st day of the strike, with Stellantis
following three days later.
Fain said Monday that the tentative deal with GM means “we’re officially
suspending our stand-up strike against each of the Big 3.”
Ford's tentative agreement with the UAW, if ratified by that company's 57,000
members, will give raises totaling 25 percent over the next four years,
reinstate cost-of-living adjustments and give top wages to new hires after three
years, among other benefits. Stellantis matched the 25 percent wage raise and
also agreed to reopen the idled Belvidere Assembly in Illinois.
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Fain and UAW Vice President Chuck Browning, who represents the union’s Ford
department, said on a Facebook broadcast Sunday evening that the Ford agreement
includes more than $8 billion in manufacturing investments and a commitment to
put electric vehicle battery and assembly plants under the national agreement.
Workers will get immediate 11 percent raises and $5,000 bonuses upon
ratification. Top pay rates in 2027 will exceed $42 per hour when including
cost-of-living adjustments, UAW leaders said.
GM previously had offered a 26 percent increase to temporary employees’ wages,
conversion of full-time temporary employees with at least one year of seniority
to permanent full-time status upon ratification and going forward, and
profit-sharing payments to temps who have worked at least 1,000 hours.
It was not immediately clear Monday whether all of those provisions were
included in the final agreement.
GM and union negotiators had met for several days in an effort to reach a deal,
including over the weekend.
Strike ending
Before the announcement, workers were continuing to picket GM's Lansing Delta
Township assembly plant in Michigan, which joined the strike Sept. 29. Mike
Huerta, president of UAW Local 602, which represents workers who build the
Chevrolet Traverse and Buick Enclave there, said he was awaiting details of the
agreement and word that the strike has ended.
The significance of the wage and benefits gains the union was able to win at the
bargaining table ultimately will vary based on employees’ seniority and
individual circumstances, Huerta said.
“It's important for all of us not to say, ‘Well, this is the most important
thing,’ because that may not be the most important thing for everybody. It most
certainly won’t,” he said. “Those folks just starting out have very different
expectations and wants than somebody who's been here for 30 years.”
Workers will be engaged in the ratification process, he said.
“Folks will be asking specific questions based on what their expectations were,
what they hoped for and what they wanted,” Huerta said. “And trust me when I
tell you, they'll be letting their opinions known.”
Will Hubbard, who has worked for GM for 20 years, said wage increases and the
restoration of cost-of-living adjustments are important to him.
He and other employees at the time gave concessions during GM’s bankruptcy in
the late 2000s and “we really haven't gotten anything back. And now, I think, is
the time,” said Hubbard, who’s been at the Lansing plant since 2012.
Workers have been on strike at the plant for more than a month. It started
snowing Monday as they walked the picket line while awaiting confirmation that
their strike duties were done.
“Usually during the beginning of any kind of walkout or strike, momentum’s high,
everybody loves it,” Hubbard said. “As time goes on, momentum, I feel, kind of
dies down because you're back to the everyday thing. But everybody we talk to is
still in high support, high spirits. So I think we've been doing a pretty good
job of keeping the morale high.”
Meanwhile, the strike continued Monday at GM’s Customer Care and Aftersales
parts distribution center in Lansing, Mich., while members awaited details of
the tentative contract, said Jean Duchemin, vice president of UAW Local 1753,
which represents workers there.
Should it line up with deals reached with Ford and Stellantis, Duchemin said,
employees generally also would receive 25 percent wage increases over the life
of the contract. Duchemin said he would receive a wage increase to $35 per hour
upon ratification, from $23 per hour now, should workers at Customer Care and
Aftersales be moved to the same wage tier as higher-paid manufacturing workers.
“This is record. This is history,” he said Monday, before full details were
known. “This is a big deal.”
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