I have written or edited about the auto industry on and off (mostly on) since 1985, first at The Indianapolis Star then, for more than a dozen years, at Bloomberg News in Detroit, followed by almost nine years at SME Media.
General Motors Co. and the United Auto Workers on Monday reached a tentative labor contract. The agreement came days after Ford Motor Co. and Stellantis also entered into tentative pacts for four-and-a-half year labor accords.
Biden said he had spoken with UAW president Shawn Fain. “These agreements ensure the iconic Big Three can still create more the world in quality and innovation.”The UAW won raises of 25% during the contract plus restoration of cost-of-living adjustments. The agreement shortens the time for members to receive top pay rates. Going into talks, the UAW sought a raise of 40% during the terms of the contract.
Under Fain, the union altered its strategy for labor talks with the Detroit automakers. The UAW went on strike against some plants at all three companies in mid-September. The union then added additional operations to the strike as time went on.Until this year, the union usually selected a so-called target company and concentrated bargain efforts there. The UAW would then seek to extend the basic terms to the other two automakers. If a strike took place, it would only be at one company.
Before the end of this month, the UAW added the largest, most profitable factories at all three automakers to the strike. In, the pressure was on GM. The union boosted the pressure Saturday night, when it added a Spring Hill, Tennessee, operation to its walkout against GM.the Ford agreement. The Stellantis ratification begins in a few days. The UAW paused its strike and sent members back to work at Ford and Stellantis during the ratification period.
For the UAW, the drive to EVs also presents challenges. EV assembly doesn’t require as many workers. Some UAW-represented factories make engines and transmissions for traditional internal combustion engines. One of Fain’s main goals was to protect the jobs of members during the switch to EVs.
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