Detroit, MI – The United Auto Workers (UAW) union has reached a tentative deal with General Motors, ending a two-week strike that cost the automaker an estimated $57 million per day. The new four-year contract includes a number of gains for UAW workers, including higher wages, improved benefits, and greater investment in job security and training.
The deal marks a significant victory for the UAW, which represents over 150,000 GM workers across the United States. The union has been fighting for years to secure better compensation for its members, who bore the brunt of concessions during the 2008 financial crisis.
“This agreement recognizes the contributions of our members in making GM the profitable company it is today,” said UAW President Gary Jones in a statement. “We look forward to presenting the offer to our members.”
Key provisions of the tentative deal include:
- A 33% increase in pay for veteran workers over the life of the contract. This helps bridge the wage gap between newer hires and more senior employees.
- $2,500 in incremental bonuses totaling $10,000 for retirees by 2028.
- Elimination of the two-tier wage system, bringing all workers to the same pay scale regardless of seniority.
- $500 million investment by GM in job security and training over the next 4 years.
- Enhanced health care coverage, including reduced prescription drug costs and increased mental health treatment.
The strike at GM was the latest in a series of strikes the UAW has undertaken against Detroit automakers in recent months. The union is becoming more aggressive in demanding higher wages after years of concessions.
Now that an agreement has been reached, the tentative deal will be put to a ratification vote by UAW membership. If approved, operations at GM facilities across the country can resume after being halted by the work stoppage.
Industry experts say the deal is likely to become a pattern for negotiations with Ford and Fiat Chrysler, as the UAW will seek similar gains across the board. The contract signals that the once-beleaguered union is regaining leverage as the auto industry rebounds.
