UAW Reaches Tentative Deal with General Motors

Facts

• The United Auto Workers (UAW) union reportedly struck a tentative agreement with General Motors on Monday, suggesting it has now agreed to pending deals with Detroit's Big Three automakers.¹
• The deal — which comes after the UAW announced similar agreements with Stellantis and Ford last week — is set to end a strike that began on Sept. 15, with 13K union members walking off the job after their contracts expired.²
• At one point, nearly 50K auto workers were simultaneously on strike, during the longest period of industrial action seen in the US in 25 years. However, 16.6K Ford strikers have reportedly returned to work, while 14K Stellantis strikers are in the process of returning. GM's estimated 18K protesting workers could return to work within days.³
• The new contracts come with boosts in pay and benefits for the 146K union members, including an immediate 11% raise in the top hourly wage rate and cost-of-living pay raises, which are set to reach 30% by the expiration of the contracts in April 2028.⁴
• While Ford said the seven-week-long strike had cost the company $1.3B and the new agreement would increase labor costs by $850 to $900 per vehicle produced, GM claims the strike has cost them nearly $800M.⁵
• Though there are reports that the UAW had suspended their strike against Detroit's Big Three, UAW local leaders are expected to hold regional meetings with rank-and-file members on Friday to discuss the contract and take a vote on whether or not to ratify the deal.⁶

Sources: ¹Al Jazeera, ²NBC, ³CNN, ⁴Associated Press, ⁵CNBC and ⁶Reuters.

Narratives

• Left narrative, as provided by The New York Times. The UAW's push for labor rights and fair pay has resulted in success, having achieved record pay increases and benefits as part of its agreements with Detroit's Big Three. Labor rights and general economic equality have been on a staggering decline in the US, and hopefully, this win for workers can be a beacon of hope for the future of employment rights. The UAW's strike has worked, and it should serve as a starting point for all labor movements.
• Right narrative, as provided by The Wall Street Journal. Union members have squeezed auto manufacturers for everything they have, and the UAW strike will cripple Detroit's auto industry. It's understandable for workers to demand better wages and benefits, but the UAW deals come with a ridiculously high pay increase. This may be a short-term win for workers, but with labor costs up and share prices down, it's only a matter of time before the workers feel the same pain that the automakers are feeling right now.

Predictions