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UAW Reaches Tentative Deal With GM, Contentious Strikes Soon To Conclude

UAW has now reached a tentative deal with The Big Three following a deal agreement with General Motors. Photo Credit: Shutterstock

Posted October 30, 2023

The United Auto Workers and General Motors, the last of the Big Three to enter into a deal, have entered into an agreement that will see the end of the six-week-long U.S. Labor strikes. The end of the strikes also gave way to large investments in for assembly facilities across the nation, including $1 billion for Kansas City Assembly in Claycomo.

News of the deal was first reported Monday by Bloomberg.

Of the Big Three auto manufacturers—GM, Ford and Stellantis— Ford Motors was the first to reach a tentative agreement last Wednesday followed by Stellantis on Saturday.

The tentative agreement between GM and the UAW will match the financials of the Ford deal, an anonymous source told the Detroit Free Press Monday. A 25 percent wage increase across the life of the 4.5-year contract, to expire on April 30, 2028.

Additionally, a reinstatement of the 2009 cost-of-living adjustment formula, the same profit-sharing formula reached with Ford, a three-year in-progression to the top wage and an end-of-tier wage scales by the end of the contract, the Detroit Free Press reported.

The historical strikes began in September lasting six weeks.

Last week, as part of the Ford deal, large promised investments would be given to several assembly plants including ones in the Kansas City area.

  • $1 billion in Kansas City Assembly
  • $2.1 billion for Ohio Assembly
  • $1.2 billion for a new EV at Louisville Assembly
  • $900 million for F-150 production and new EV trucks

Ford said Thursday that the union’s strike has cost it $1.3 billion and GM said Tuesday the strike had cost it about $800 million.

Deutsche Bank estimated the cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement, $7.2 billion at GM, and $6.4 billion at Stellantis, CNBC reported.