an agreement reached between the three major American automobile manufacturers

by time news

2023-10-30 22:40:40

An unprecedented six-week strike among the three major American automobile manufacturers is coming to an end thanks to the agreement in principle reached on Monday October 30 between General Motors and the UAW union, after those of Ford and Stellantis, agreements described as“historical” by President Joe Biden.

“These record agreements reward auto industry workers who have made many sacrifices to keep the sector running” during the great economic crisis of 2009, estimated the American president.

A historic strike by the “Big Three”

Joe Biden has made his support for unions a hallmark of his term, and the UAW’s support of his candidacy in 2020 helped him swing Michigan in his favor, when the state had voted for Donald Trump in 2016. The president went on a picket line in front of a General Motors factory at the end of September.

Asked Monday whether there was a preliminary agreement between UAW and GM negotiators, a source close to the negotiations responded: « Oui », without further details. Contacted by AFP, GM and the union declined to comment.

The movement was triggered on September 15 due to lack of agreement when the collective agreements expired, mobilizing at its peak more than 45,000 of the 146,000 registered with the UAW working for these three major historic American manufacturers.

This is the first time since the creation of the union in 1935 that the « Big Three » were targeted by a simultaneous strike, which increased in intensity over the approximately six weeks of its duration.

Salary increases and benefits

After calling for walkouts at secondary factories and parts distribution centers, the UAW struck hard, targeting the largest factory and the « plus lucrative » from each of the three groups in Detroit (Michigan).

Ford’s Kentucky Truck Plant, which has annual sales of $25 billion, was included in the strike on October 11. The manufacturer reached an agreement in principle on Wednesday, after 41 days of strike, and Stellantis (Chrysler, Jeep, etc.) did the same three days later.

Strike in the United States: the UAW union, long experience of social conflicts

Ford “put 50% more on the table than when we walked out”rejoiced Shawn Fain, president of the UAW, when announcing the agreement with the manufacturer. “Once again, we have achieved what we were told was impossible just a few weeks ago”he noted on Saturday, announcing the agreement with Stellantis.

These agreements provide for salary increases over the duration of the four-year collective agreements, cost of living adjustment measures, social benefits, improvements for retirees among others.

Creation of 5,000 positions at Stellantis

They also contain specificities depending on the group, such as at Stellantis in terms of employment. The group has in fact committed to creating 5,000 positions even though it had planned cuts, particularly in the context of the criticized closure of a factory in Belvidere (Illinois) which is “saved”according to Rich Boyer, vice president of the UAW. “We won a new vehicle in Belvidere”he said on Saturday.

The agreement with Stellantis provides for a 25% increase in base salaries by 2028, according to the UAW. Ford also agreed to a 25% increase in base pay. This is lower than the 40% that Shawn Fain demanded when the strike launched, but it is significantly higher than the 9% initially proposed by the group in August.

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