General Motors Co.(GM) reached a tentative agreement with the United Auto Workers, bringing an end to a 6-week-old strike.
The terms of the pact are broadly similar to the deals signed earlier by Ford Motor Co. and Stellantis NV, including a 25% hourly pay raise plus cost-of-living allowances over the more-than-four-year contract.
This information comes from sources who weren’t authorized to speak publicly.
Since this is still a tentative deal, the GM union members still need to vote to approve the deal.
The strike started with 13,000 UAW members going on strike, then a few days later, a second round of strikes at 38 locations in 20 states.
Ford was spared while union leadership, led by union President Shawn Fain, told members to walk off the job at 38 parts distribution facilities for GM and Stellantis.
At the end of last week, UAW added an additional 7,000 workers to the strike, this time not sparing Ford but leaving Stellantis out of the third round.
This time, in the fourth round, the union directly targeted Ford, announcing the shutdown of the automaker’s Chicago assembly plant along with GM’s assembly facility in Lansing, Michigan.
Following the fourth round, Ford executives held a media briefing Friday afternoon where CEO Jim Farley said there was still time to make a contract deal that would “avert a real disaster, but not much more time, given the fragility of the supply base of all the companies.”
This comes after Biden showed his support by being the first president in U.S. history to participate in a union based strike.
Just a few days ago, the UAW union approved a tentative agreement with Ford Motor.
The agreement includes $8.1 billion in new plant investments by the company, $5,000 ratification bonuses and other economic gains such as 25% compounded wage increases and improved profit-sharing payments.
