After a six-week period of strikes, General Motors has now also reached an agreement with the influential United Auto Workers (UAW) union in the American automotive industry. Prior to this, automakers Stellantis and Ford had already forged similar accords with the powerful union.
This development brings an end to the protracted strikes that have incurred substantial financial losses for the three manufacturers.
The agreement with GM, the company behind renowned brands such as Chevrolet and Cadillac, closely mirrors the provisions of the earlier agreements made by its two competitors. Notably, it includes a substantial 25 percent wage increase. The GM workforce affiliated with the union will still need to ratify the agreement.
Last week, both General Motors and Ford adjusted their profit expectations due to the strikes. According to Ford, these work stoppages have cost the company $1.3 billion (1.2 billion euros). GM, on the other hand, reported strike-related costs totaling $800 million.
For the first time, employees of the three major automotive companies in the city of Detroit simultaneously halted their work. In addition, thousands of employees in Canada went on strike at Stellantis, the parent company of brands like Chrysler and Jeep.
U.S. President Joe Biden, a supporter of the union’s demands, expressed his contentment with the agreement reached between the union and the three automotive corporations on Monday. He described it as a landmark agreement and emphasized that it represented “positive economic news.”
About the author: Jeff Roper
Jeff Roper has been teaching journalism for more than five years. A theorist who nevertheless took up some practice. He is fond of the history of journalism and journalism.