The United States auto union reached an agreement with General Motors to raise wages by 25%. As a result, the union announced an end to the workers’ strike at the company’s factories, which had stalled production for 6 weeks. Prohibition and loss of billions of dollars.
Union leader Suan Féin announced the end of the strike in a video message on the X website.
The union had initially demanded a 40% pay hike, based on the company’s top executives’ incomes increasing by this percentage.
Before the strikes and negotiations began, the major car companies were ready to increase wages by 20% over 4 and a half years and insisted they could not increase more.
The terms of the union’s contract with General Motors are very similar to those of both Ford Motors and Stellandis, including a 25% increase in hourly wages and cost-of-living allowances. The contract, which will last for 4 years.
Although the economic terms are similar to those reached by GM’s competitors, it is not immediately clear whether the terms include benefits for retirees.
GM’s 46,000 workers still have to ratify the deal.
Shares of the company rose 3.9% in pre-trade trading. Gains were later pared on news that an earlier deal would be reached.
Appreciation for the agreement
US President Joe Biden, who has been on picket duty with striking workers for the first time in office, hailed what he described as a “historic” deal that would “reward auto workers who give up so much to keep the industry going.”
In a separate statement, GM CEO Mary Parra said, “General Motors is pleased to reach a tentative agreement with the labor union…while helping us continue to invest in the future and create good jobs.” He added that his company is looking forward to everyone returning to work in all branches.
“GM workers will return to work as the contract goes through the approval process,” the union said.
At its height, the strike mobilized more than 45,000 union members, out of an estimated 146,000, who worked for the three major automakers.
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