On October 24, 2023, members of the United Auto Workers (UAW) union went on strike at a General Motors assembly plant that produces full-size sport utility vehicles, another extension of the strike in Arlington, Texas.
James Breeden | Reuters
DETROIT – Negotiators for the United Auto Workers star The two sides have largely agreed to the terms of a tentative deal, according to sources familiar with the negotiations, after about six weeks of targeted U.S. labor strikes by unions.
The terms of the agreement still must be approved by UAW leadership before the union plans to formally brief local union leaders and publicly announce a tentative agreement on Saturday, according to three sources who spoke on condition of anonymity. They agreed to remain anonymous because the negotiations were private. .
The tentative deal, which still needs approval from union leaders and ratification by members, comes under a 4.5-year agreement between the union and the union. Ford Sources previously told CNBC on Wednesday.
UAW President Shawn Fain held heated talks with Stellantis on Thursday and Friday before turning his attention to General Motors. The UAW and GM are expected to resume talks at noon on Saturday in hopes of also reaching a deal, people familiar with the matter said.
The UAW plans to hold a meeting with local Stellantis union leaders early Saturday afternoon after the two sides agreed in principle to the terms of the agreement.
Bloomberg News first reported The company made additional concessions to the UAW on Saturday, and the union plans to announce a tentative deal this afternoon that would include supplying new products to an idled assembly plant in Illinois.
The deal comes after the union struck a deal with Ford on Wednesday. The agreement still needs approval from union leaders and approval from members.
The tentative agreement is expected to end a six-week targeted strike by the union after the two sides failed to reach a new agreement by a Sept. 14 deadline for the 146,000 UAW members. The union recalled more than 16,000 striking Ford workers after reaching a tentative deal with the automaker.
Ford’s agreement includes a 25% pay increase over the life of the agreement, with an initial 11% increase. These raises and benefits cumulatively raise top wages to more than $40 an hour, with starting wages increasing 68% to more than $28 an hour.
It also reinstated cost-of-living adjustments, shortened the eight-year path to the top wage to three years, and allowed the right to strike due to factory closures, among other significantly enhanced benefits.
The strikes cost General Motors, Ford and Stellantis collectively billions of dollars in lost production. Ford said Tuesday that the union’s strike has cost it $1.3 billion and that if the agreement is approved by members, labor costs will increase by about $850 to $900 per vehicle produced.
The proposed deal sets a record for the EU, with negotiations far more confrontational and strategic than in recent history.
The union launched negotiations with all three automakers simultaneously, breaking recent history when UAW leaders bargained with each automaker individually, picking a major company to focus efforts on and then working out the remaining deals under the leading tentative agreement. .
It’s unclear how much these labor deals will increase labor costs for the companies, which have argued that giving in to all union demands would affect their competitiveness and even long-term viability.
Deutsche Bank recently estimated that over the life of the agreement, total costs would increase by $6.2 billion for Ford; $7.2 billion for General Motors; and $6.4 billion for Stellantis.
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