General Motors (GM) and the United Auto Workers (UAW) have reached a tentative agreement, putting an end to the strike at GM’s Spring Hill Assembly plant in Tennessee. The strike had disrupted production of Cadillac SUVs and various engines used in other models across GM’s brands.
This development comes less than 48 hours after the strike began, demonstrating the willingness of both parties to reach a resolution. The UAW had already reached a tentative agreement with Ford Motor Co. last week and another with Stellantis on Saturday. The agreement with GM is expected to mirror the deal with Ford.
While the details of the agreement have not been disclosed, sources close to the negotiations have revealed that GM offered financial terms that match those in the Ford deal. This includes a 25% wage increase over the course of the contract, a reintroduction of the cost-of-living adjustment, and the same profit-sharing formula.
The next step is for local union leaders to review the contract terms with members, after which a vote will be conducted. UAW President Shawn Fain has endorsed the deal with Ford and encouraged members to visit the union’s website for more information.
The pressure on GM to reach an agreement with the UAW has been mounting, particularly with the strike at Spring Hill Assembly. Labor experts believe that once one deal is reached, it becomes easier for others to follow suit. The cost implications of the strike have been significant for GM, with an estimated loss of $200 million per week in production revenues.
Both GM and the UAW have strong incentives to finalize the agreement promptly. The union leaders are aware that some members have been on strike since September 15, and the financial strain on them is becoming apparent. Additionally, the strike has affected auto parts suppliers, causing them to lay off employees as the plants they supply remain idle.
While the strikes at Ford and Stellantis have come to an end as workers consider their tentative contracts, GM still has several facilities on strike. This includes 18 parts distribution centers, the Wentzville Assembly plant, the Lansing Delta Township Assembly plant, the Arlington Assembly plant in Texas, and the Spring Hill Assembly plant.
Further updates on the situation will be provided as the story develops.