GM CEO Mary Barra Ends Lengthy UAW Strike, Saving Company Millions
General Motors CEO Mary Barra recently struck a deal with the United Auto Workers (UAW) to end a six-week strike, saving the company millions of dollars. This agreement came after Ford and Stellantis had already reached new contracts with the UAW, increasing the pressure on GM to settle on similar terms.
Under the tentative deal, which still needs to be ratified by UAW members, the contracts would last four years and eight months and include a 25% wage increase for top assembly plant workers. With cost-of-living adjustments, these wage increases could exceed 30% by April 30, 2028.
For GM, reaching a deal was crucial as the strike was costing the company millions of dollars each week. The company was eager to open a new SUV factory in Spring Hill, Tennessee, and resume operations at a profitable truck-based SUV plant in Arlington, Tennessee.
While it remains unclear whether the Tennessee plant opened on time, around 18,000 striking workers across the nation awaited official word from union officials that the strike was ending. Mike Huerta, president of UAW Local 602, emphasized the need to review the details of the deal before celebrating its outcome.
President Joe Biden expressed his support for the agreement, calling it great news. Meanwhile, Stellantis workers in Canada briefly went on strike but quickly reached a deal that included base hourly wage increases of nearly 20% for production workers.
The Spring Hill plant in Tennessee, where workers initiated the strike, is a major source of revenue for GM as it produces engines for vehicles assembled at multiple plants across North America. The agreements with the UAW also revive cost-of-living adjustments that had been suspended since 2009.
The UAW targeted strikes against GM, Ford, and Stellantis after their contracts expired in mid-September. With approximately 46,000 UAW members on strike at their peak, representing about one-third of the union’s total membership, the automakers faced significant production disruptions.
Overall, this deal between GM and the UAW represents a turning point in the ongoing struggle for workers’ rights. The agreements provide substantial wage increases and potentially reshape the balance between corporations and the labor force.
