Fresh off the lot… The UAW reached a tentative labor deal with GM yesterday, days after making similar agreements with Ford and Stellantis. The agreements (which need approval from union members) would mark the end of a six-week strike against the Big Three US automakers — and the first simultaneous stoppage. It’s a win for autoworkers:
Under the hood: The new contracts include a 25% wage hike over four years — more than workers have received in the past 22 years combined — and the return of inflation-proofing cost-of-living adjustments. More audacious asks, including a 32-hour workweek, weren’t achieved.
Hitting the brakes: During the strike, the UAW escalated the # of walkouts, targeting some of the most profitable plants. The initial 13K-member strike grew to 40K+ of the union’s 146K members.
Sticker price: While the stoppages weighed heavily on production (Ford said the strikes cost it $1.3B; GM said $800M), pay bumps will cost automakers in the long term too (Ford said the contract could add ~$850 in expenses per vehicle).
From defense to offense… The UAW says it’s targeting nonunion automakers like Tesla, Toyota, and Volkswagen next, expanding to “the Big Five or Big Six” as Detroit’s market share shrinks. As part of the new deal, the union secured jobs and the ability to organize at all three automakers’ battery and EV facilities — something experts say is necessary for the UAW’s future.
Labor’s lookin’ up the road… As the EV transition ramps up, the UAW will likely use its electric wins as a recruiting tool for workers at Tesla (FYI: Elon isn’t a union fan). By trying to unionize electric autoworkers, the UAW hopes to future-proof itself against a changing industry, similar to striking entertainment workers (looking for AI protections) and those working in hospitality (seeking automation protections).