A deal between General Motors (GM) and the United Auto Workers (UAW) union has brought to an end six weeks of strikes that hit three of the biggest carmakers in the US.
News of a tentative deal between the pair last night followed similar agreements between the union and Ford and Stellantis, the owner of the Chrysler brand but perhaps best-known in the UK as Vauxhall’s parent company.
They were hailed as a great victory by the union but analysts warned they were likely to come with a sting in the tail for US consumers as the companies would raise vehicle prices to compensate for billions of dollars in additional costs.
While the roughly 50,000 workers at each of the three carmakers have yet to formally ratify the agreements, they have returned to work.
The main battleground was over pay, which has remained stagnant since the 2008 financial crisis.
The workers, who won support from US president Joe Biden, will secure pay rises averaging 25% over the terms of the proposed new contracts at each company.
Some older and younger workers, including the lowest-paid in areas such as component production and warehousing, will see a greater lift over the four-and-a-half-year deal.
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The union said the agreements also included restriction on the use of lower-paid temporary workers and a right to strike in a bid to prevent any future plant closures.
UAW president Shawn Fain said: “We wholeheartedly believe our strike squeezed every last dime out of General Motors.
“They underestimated us. They underestimated you,” he told members in a victory address late on Monday.
GM boss Mary Barra responded: “We are looking forward to having everyone back to work across all of our operations”.
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The union said it would now focus efforts on trying to secure recognition at other carmakers in a bid to improve workers’ terms more widely.
Mr Biden, who is facing re-election next year, said: “This historic contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs while helping our most iconic American companies thrive.”
His aides had worried that a prolonged strike would damage the US economy and the Democratic president’s chances at the polls.
