Auto workers across the U.S. are breathing a collective sigh of relief as negotiations between the United Auto Workers (UAW) and the global auto giant General Motors (GM) came to a close with a labor contract potentially on the table. After months of back and forth, the two sides have managed to reach a deal – the details of which will be released when the union ratifies the agreement later this month.
The strike was the largest in the U.S. in decades, with nearly 50,000 members of the UAW walking off the job at GM factories around the country. Workers had been demanding greater job security, higher wages, better benefits, and an end to two-tier pay for newer employees.
The total costs of the strike are unknown, but analysts expect them to reach into the billions. GM’s profit margins were already slim and a prolonged strike could have easily resulted in major losses for both the company and the workers. Thankfully, cooler heads prevailed and the two sides have now reached a potential agreement.
This agreement is a major win for both the union and the company. GM has made a commitment to invest $7.7 billion into its U.S. facilities over the next four years, which the UAW says will create up to 9,000 jobs, and increase wages for both electricians and skilled trade workers. In addition, GM has agreed to end the two-tier wage system, and offer greater financial protections for temporary workers.
Though the details of the deal have not been made public yet, the agreement reportedly includes a mix of wages and benefits for GM’s U.S. workforce. The deal also includes a commitment to add up to 4,000 additional jobs in the U.S. and the union says it “solidifies the UAW’s role at GM” for years to come.
For now, the saga is over the thousands of workers involved can move forward with some peace of mind that their jobs and futures are now secure.