The United Auto Workers (UAW) union has recently reached tentative agreements with the three major US automakers: Ford, General Motors (GM), and Stellantis. These deals, which are subject to ratification by the union members, could end the historic six-week strike that began on September 15, 2023. The strike, which involved about 300,000 workers across the country, was the first time in the union’s history that it staged a simultaneous strike against the three unionized automakers. The strike was motivated by the workers’ demands for higher wages, better benefits, job security, and a fairer two-tier system that created a gap between veteran and newer workers.
The tentative agreements, which span four and a half years, include significant gains for the workers in terms of pay, benefits, and working conditions. Some of the highlights of the deals are:
- Pay increases: The workers will receive a 25% increase in their base wages over the life of the contract, as well as the reinstatement of cost-of-living allowances (COLA) that were given up during the Great Recession. The workers will also receive a $10,000 signing bonus and a $3,000 annual bonus. The gap between the top and bottom wage rates will be narrowed, as newer workers will reach the top rate in three years instead of eight.
- Job security: The automakers have committed to invest a total of $40 billion in their US plants, creating or retaining about 25,000 jobs. The union also secured a moratorium on plant closures and outsourcing, as well as the reopening of an idled plant in Detroit. The workers will have more say in the allocation of work and the use of temporary workers, who will also receive better pay and benefits.
- Health care: The workers will maintain their current health care plan, which covers 97% of their medical costs, without any increase in premiums or co-pays. The union also won improvements in dental and vision coverage, as well as a new wellness program.
- Retirement: The workers will receive a 3% increase in their pension benefits, as well as a $1,000 increase in their 401(k) match. The union also secured a lump-sum payment of $5,000 for retirees and surviving spouses, as well as an increase in the retiree health care trust fund.
The tentative agreements, which have been hailed by the union leaders as historic and transformative, reflect the strength and solidarity of the workers who participated in the strike. The strike, which was the longest US auto strike in 25 years, cost the automakers billions of dollars in lost production and sales. The strike also drew public support and sympathy from other unions, politicians, celebrities, and consumers. The strike showed that the workers were willing to fight for their fair share of the profits and respect that they deserve.
The ratification process, which is expected to take about two weeks, will determine whether the workers accept or reject the tentative agreements. The union’s national councils for each of the automakers have already voted unanimously to send the deals to the membership for a vote. The workers will have to weigh the pros and cons of the deals, as well as the costs and benefits of continuing or ending the strike. The ratification process will also test the trust and confidence of the workers in their union leadership, which has been tarnished by a federal corruption probe that has resulted in several convictions and indictments of former and current union officials.
The outcome of the ratification process will have significant implications for the future of the US auto industry, the labor movement, and the economy. If the workers ratify the deals, they will set a new standard for the auto workers and other workers in the country, as well as secure their place in the industry’s transition to electric and autonomous vehicles. If the workers reject the deals, they will face the risk of prolonging the strike, losing public support, and facing a possible intervention by the federal government or the courts. Either way, the workers have made history by standing up for their rights and dignity in the face of corporate greed and power.
