Following Ford Motor Co.’s decision to end a six-week-long strike with a 25% wage increase offer to its United Auto Workers (UAW) members, General Motors Co. and Stellantis NV have stepped up with a similar proposal. This move has been eagerly anticipated in response to mounting pressures from the strike, which began on September 15 and has since cost the auto industry billions in losses.
In addition to the wage increase, GM’s proposal also encompasses cost-of-living adjustments over the contract’s duration, which extends for more than four years, according to insiders familiar with the matter. These individuals, who requested anonymity due to the sensitive nature of the ongoing talks, revealed that the contract, though nearing completion, is still under discussion. Key topics include provisions for temporary workers, among other details.
A marathon negotiation session on Friday between GM and UAW saw an offer tabled at approximately 4 a.m., only to pause discussions by 5 a.m. The talks resumed later that morning at 11 a.m. with the automaker expressing its intention to reach an agreement by day’s end. However, a formal announcement might not surface until Sunday.
While these are significant strides towards a resolution, any finalized agreement must pass the scrutiny of union leadership before being presented to the company’s union members for a vote, a process that might span several weeks.
Stellantis, on the other hand, is reportedly inching closer to finalizing portions of a tentative agreement with the union, though details remain under wraps.
The UAW strike, which rapidly expanded to encompass over 45,000 workers across eight assembly plants and 38 parts-distribution facilities in 22 states, has imposed considerable financial strain on the auto sector. Ford recently disclosed that the strike had eroded $1.3 billion from its coffers. GM, not far behind, announced losses approximating $800 million earlier in the week. In light of these uncertainties, both auto giants retracted their earnings guidance for the current fiscal year.
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