General Motors and Jeep maker Stellantis are expected to offer the United Auto Workers (UAW) union a deal similar to the agreement recently reached with Ford. This comes after UAW members and Ford reached a tentative labor agreement on Wednesday, ending a six-week strike at the company. The deal includes a 25 percent wage increase over four years, with 11 percent coming in the first year and the potential for cost of living increases that could raise pay to 33 percent.
If GM and Stellantis do not follow Ford’s lead, UAW President Shawn Fain has threatened to add factories to their partial strikes. The possibility of more strikes could have significant consequences for the companies, especially GM, which is reportedly losing around $200 million per week due to the ongoing strike.
UAW Ford employees are expected to return to work pending the approval of the tentative agreement by the union’s 57,000 members through a majority vote. It is worth noting that President Biden publicly applauded the Ford deal, putting pressure on GM and Stellantis to follow suit.
In a significant development, GM has agreed to incorporate its new electric vehicle battery factories into the UAW’s national contract, thereby providing unionized status for these facilities. This move addresses one of the key concerns of the striking workers, as the production of electric vehicles is expected to increase in the coming years.
The details of the potential agreements between GM, Stellantis, and the UAW are yet to be finalized. However, these developments signal progress in ongoing labor negotiations within the automotive industry.
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