The challenge of the United States Automobile Workers Union (UAW) reached its climax this Monday when General Motors (GM) reached an agreement in principle with its employees. In this way, a strike was put to an end that for the first time in history managed to unite the efforts of the employees of the three large companies in Detroit, the so-called 'Big Three', GM, Ford and Stellantis.
The conclusion of these more than six weeks of work, which affected tens of thousands of employees and which even included the unusual image of Joe Biden on the picket line, megaphone in hand, something never seen before in a president of the United States, It is pending ratification by the workers.
“I think it's great,” Biden said, with a thumbs up, before setting off from Delaware, where he spent the weekend, back to the White House.
GM was the last to close the conflict, with an agreement in principle for four and a half years and a salary increase, among other labor benefits, of around 25%. Ford was the first to announce an agreement in principle last week. Then there was surprise. It was expected that General Motors would be the second to announce a pact, but on Saturday Stellantis, former Chrysler and manufacturer of the popular Jeep, was anticipated.
In parallel, the union called for the expansion of the strike at GM. to a plant in Tennessee, a circumstance that caused the acceleration of these negotiations throughout that day and this Sunday.
The agreed increase and the accumulated benefits represent an impact on salaries of more than $40 per hour, including a 68% increase in initial payrolls, which stand at $28 per hour, the UAW assured regarding Ford and Stellantis. These increases have been adjusted to the cost of living and are considered to be similar to those of the GM.
The strike has collectively cost the three companies billions of dollars in lost production. Ford said Thursday that the cost amounted to $1.3 billion and the pact, if ratified, will increase the cost of production to $850 to $900 per vehicle. GM indicated that the loss, if any, amounts to 800 million.
The big three are trying to control these expenses while investing large sums in the conversion to electric vehicles, a transition that has facilitated the excuse that salaries could not be improved by the appropriate amount. But, as the union and its leader Shawn Fain repeatedly stressed, company leaders have had no problem raising their salaries by at least 40% in the last four years.
“We have to make sure that we have contracts that will allow us to win in the market challenge for electric vehicles,” said Mary T. Barra, CEO of GM.
The stoppages have been partial, by plants and warehouses, which have been added as an element of pressure. In total, more than 150,000 workers now have to ratify the agreements, although the fact that these not-yet-final agreements have been reached means a return to work immediately.
