Latest News

GM reaches tentative deal with UAW, ending strikes at Detroit automakers after six weeks


In this article


DETROIT — The United Auto Workers and General Motors

GM is the final Detroit automaker to reach a deal with the union following historically contentious talks. Tens of thousands of workers across the country went on strikes after the sides failed to reach agreements by a Sept. 14 deadline.

Two sources familiar with the GM-UAW talks said negotiations occurred last night and into the early morning to reach an agreement. News of a deal was first reported Monday by Bloomberg.

Spokespeople with the UAW and GM declined to comment Monday.

Ford MotorWednesday, followed by a deal with Chrysler parent Stellantis

The 4½-year tentative agreements must still be ratified by members at each of the automakers. The headline economics of the deals, such as 25% wage increases, were patterned off Ford’s initial deal.

United Auto Workers (UAW) members strike at a General Motors assembly plant that builds the U.S. automaker’s full-size sport utility vehicles, in another expansion of the strike in Arlington, Texas, October 24, 2023.
James Breeden | Reuters

The raises and benefits cumulatively boost the top wage to more than $40 an hour, including an increase of 68% for starting wages to over $28 an hour, the union said of the Ford and Stellantis deals.

Those deals also reinstated cost-of-living adjustments, reduced an eight-year path to top wages to three years and allowed the right to strike over plant closures, among other significantly enhanced benefits.

Sources told CNBC the GM deal matches those improvements.

The strikes have collectively cost GM, Ford and Stellantis billions of dollars in lost production. Ford said Thursday that the union’s strike has cost it $1.3 billion and the deal, if ratified by members, would increase labor costs by roughly $850 to $900 per vehicle produced.

GM said Tuesday the strike had cost it about $800 million.

The proposed agreements are record-setting for the union, which was far more confrontational and strategic during the talks than in recent history.

The union initiated negotiations with all three automakers at once. This was a break from recent history when UAW leaders would bargain with each automaker individually, select a lead company to focus efforts on and then pattern the remaining deals off a leading tentative agreement.

It’s not immediately clear how much the labor deals will increase labor costs for the companies, which had argued that giving in to all of the union’s demands would affect their competitiveness and even long-term viability.

Deutsche Bank recently estimated the overall cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement, $7.2 billion at GM, and $6.4 billion at Stellantis.

Don’t miss these CNBC PRO stories:

Want to retire in 5 years? Here’s how to invest for it, according to the prosMorgan Stanley says the average stock is breaking down, S&P 500 to fall to 3,900 by year-endThis highly profitable industry is booming as the population agesThis chip stock is getting a ton of love from Wall Street, and it’s not Nvidia

Education Department penalizes Mohela for error that made 800,000 student loan borrowers delinquent

Previous article

Goldman says sell-off is a buying opportunity for these stocks with healthy balance sheets

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News