© Reuters.
The United Auto Workers (UAW) union has made progress in negotiations with Ford Motor (NYSE:), General Motors (NYSE:), and Stellantis (NYSE:), while maintaining the strikes that began on September 15, 2023. The strikes, which have involved approximately 25,000 UAW members, have selectively targeted certain locations at all three companies, affecting some of their most profitable models.
On Friday, UAW President Shawn Fain announced that GM had agreed to include battery factory workers in its national contract. This agreement impacts joint ventures such as Ultium Cells. The decision came after the union threatened to initiate a strike at GM’s Arlington factory.
The UAW has been advocating for a 40% wage increase for workers. In response, automakers initially proposed just over a 20% raise spread over four years. The union is also striving to abolish the system where new hires earn just over half the top UAW wage. In light of these demands, all three companies have agreed to improve their offers, including larger pay raises and cost of living adjustments.
The ongoing strikes have drawn attention from President Biden and have utilized the UAW’s $825 million strike fund to compensate striking workers with $500 a week. The initial two weeks of the strike resulted in a loss of $200 million for GM and led to layoffs due to disrupted supply and demand for parts.
The negotiations between the UAW and the automakers continue as both parties seek to resolve their differences and find a mutually beneficial agreement.
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