The strike by the United Auto Workers (UAW) union that had been on for almost two months has been suspended. While Stellantis and Ford had already reached a settlement with the Union, General Motors was the last to reach a tentative agreement, offering workers a 25 per cent hike in hourly wages.
Additionally, GM will be paying cost-of-living allowances to workers over a four-year contract. The wage adjustments will result in a total increase of 30 per cent over the contract’s life. Pay for veteran workers will also go up by 33 per cent and GM will give $2,500 in five instalments to retirees through 2028.
To increase pressure on GM to reach an agreement, the Union had extended the strike to bigger plants that accounted for bigger profits. Almost 4,000 workers boycotted work at GM’s largest plant in North America.
As per Reuters, local leaders of the UAW will be present in Detroit later this week to finalise the deal with GM, before presenting the terms to all union workers for approval.
Experts feel that the new wage agreements will increase the financial burden of the automakers. In fact, they will make it even more difficult for the Detroit Three to withstand the stiff competition from Tesla, and even Toyota which is not unionised.
The strike by UAW had begun on 15 September, causing disruption at the plants of GM, Ford and Stellantis.
As per Reuters, local leaders of the UAW will be present in Detroit later this week to finalise the deal with GM, before presenting the terms to all union workers for approval.
Experts feel that the new wage agreements will increase the financial burden of the automakers. In fact, they will make it even more difficult for the Detroit Three to withstand the stiff competition from Tesla, and even Toyota which is not unionised.
The strike by UAW had begun on 15 September, causing disruption at the plants of GM, Ford and Stellantis.
