Related Post
The United Auto Workers union in the United States auto industry reached an agreement with General Motors to increase wages by 25%. As a result, the union announced the end of workers’ strikes in the company’s factories, which lasted for 6 weeks and caused production obstruction and the loss of billions of dollars. .
Union President Xuan Fine announced the end of the strike in a video message on the X website, adding, “For the third time, I am honored to announce that we have achieved another victory in our strike.”
The union was initially demanding a 40% increase in wages, on the basis that the incomes of the company’s senior officials had increased by this percentage.
Before the strikes and negotiations began, the major car companies were prepared to increase wages by 20% over a period of 4 and a half years, and stressed that it was not possible to increase more than that.
The terms of the agreement reached by the union with General Motors are very similar to the terms of the two agreements concluded by Ford Motors and Stellantis, including a 25% increase in hourly wages, in addition to cost of living allowances over the duration of the contract, which lasts 4 years.
While the economic terms are similar to those reached by GM’s rivals, it was not immediately clear whether there were differences in terms that include benefits for retirees.
GM’s 46,000 workers still must approve the agreement.
The company’s shares rose by 3.9% in pre-trading transactions. Due to the news of reaching an agreement before the gains were later reduced.
Praise for agreement
US President Joe Biden, who joined the striking employees on the picket line in a first for a US president in office, praised what he described as a “historic” agreement, which would “reward auto workers who gave up a lot to keep the industry going.”
In a separate statement, GM CEO Mary Barra said, “General Motors is pleased to reach a tentative agreement with the labor union… while enabling us to continue investing in the future and creating good jobs.” She added that her company is looking forward to everyone returning to work in all branches.
“GM workers will return to work while the agreement goes through the ratification process,” the union said.
At its peak, the strike mobilized more than 45,000 union members, estimated at 146,000, who worked for the three major automakers.
