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GM And UAW Reach Tentative Contract Agreement

Following tentative labor contract agreements with Ford and Stellantis, the UAW and GM have finally reached a deal on the 46th day of the Stand Up Strike, subject to ratification by the automaker’s 46,000 union members.

GM and the UAW have reached a tentative contract agreement. Shown here is a group of protesting UAW members.

Although neither party has released a statement yet, the tentative agreement will likely include details similar to those negotiated with the other Detroit Three manufacturers. According to a report by the Detroit Free Press, the last sticking point was figuring out how to include GM’s Ultium Cells battery plants, which it exploits in a joint venture with LG Energy Solution. The Ultium Cells plant in Warren, Ohio is already operational, while the Spring Hill, Tennessee plant is scheduled to open in early 2024 and the Lansing, Michigan plant should open in late 2024 or early 2025.

It’s currently unclear how The General’s forthcoming fourth U.S. battery plant, which it plans to build in Indiana through a joint venture with Samsung SDI, will figure in this new worker contract that, if ratified, will expire on April 30th, 2028. The fourth plant is currently scheduled to be open for business in 2026.

The automaker released a statement on its dedicated UAW negotiations website, attributed to CEO Mary Barra. “GM is pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the U.S. We are looking forward to having everyone back to work across all of our operations, delivering great products for our customers, and winning as one team.”

Ultium Cells LLC plant in Warren, Ohio

GM and the UAW have thus reached a tentative agreement two days after the union expanded its strike to the GM Spring Hill plant in Tennessee, which currently builds the Cadillac XT5, the Cadillac XT6, the Cadillac Lyriq and the GMC Acadia, in addition to producing engines for various Chevy, GMC and Cadillac trucks assembled in other North American plants.

There were roughly 20,000 GM workers on strike, as the latter also affected production at the GM Wentzville plant in Missouri that builds the Chevy Colorado, the GMC Canyon, the Chevy Express and the GMC Savana, the GM Lansing Delta Township plant in Michigan that builds the Chevy Traverse and Buick Enclave as well as the GM Arlington plant in Texas that manufactures the Chevy Tahoe, the Chevy Suburban, the GMC Yukon and the Cadillac Escalade.

GM Spring Hill assembly plant in Tennessee

The General’s 18 parts distribution centers across the United States are also impacted by the UAW strike, with a ripple effect pushing General Motors to halt Chevy Malibu and Cadillac XT4 production at its Fairfax, Kansas assembly plant, in addition to laying off workers at various parts production plants.

As with Ford and Stellantis union members, GM’s UAW workforce should now be returning to work this week while the UAW National GM Council reviews the details of the agreement before asking its member to vote.

During its Q3 2023 earnings presentation, General Motors estimated its strike losses at roughly $200 million a week and more than $800 million overall, before the UAW announced the Arlington facility strike – considered to be the world’s most profitable auto assembly plant.

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Mike is a seasoned automotive journalist that loves both old-school muscle cars and environmentally friendly EVs.

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Comments

  1. Glad to see that the UAW prevailed. When some employees were earning only $19/hour to assemble vehicles, that was just unacceptable. Now the workers will get their fair share of the record profits GM has made, which is good because the workers gave up a lot in the last contract to save the company.

    Reply
    1. You bet, like this:

      • 25% wage increases over the 4 1/2-year contract.
      • An immediate 11% raise upon ratification.
      • A restoration of cost of living adjustments that would bring pay increases to about 30% by 2028.

      Next time cars execs will have the moral authority to lowball contract offers if they do the same to their pay packets…40% raises in this case.

      Reply
    2. Union man you’re wasting your time… This site seems to be oddly pro-corporations for some reason.

      Reply
      1. Not really, we just think they unions are inefficient, cumbersome, and difficult to deal with reasonably.

        Reply
  2. congratulations to my active Brothers and Sisters !!! UAW 3 Big three 0

    Reply
    1. You idiots really think you stuck it to the big 3 huh? What you actually did is cause tens of thousands of other people to lose money while they waited for you to finish your strike so they could get back to their jobs … without the huge, undeserved pay raises you get. You’re not going to hurt any corporate profits… what you’ve essentially done is just drive up the cost of the cars you’re putting together, so the end consumer gets to pay more for the same damn thing because YOU feel like you’re worth more than what is fair pay for the work you do. Give me a break … I can think of plenty more jobs that people work harder than you, and get paid far less. UAW is like a domestic terrorist to their corporate bosses, holding them hostage. What a joke

      Reply
      1. So Paulie, what is your alternative for getting a wage increase? Take what the boss is offering and say “thank you sir, may I have another?” They were negotiating prior to the deadline but no serious offers were put on the table by the companies. The UAW even filed Unfair Labor Practice charges against GM and Stellantis for bad faith bargaining. There’s a saying that you need to make hay when the sun shines. It appears that conditions were favorable to the UAW at this juncture for a well deserved increase. The next time the contract is up conditions may favor the manufacturer’s as they have the past many negotiations. GM gave top executives a 40% increase but told the assembly workers “sorry, we get ours but you don’t.” Negotiations are just that, negotiations. Of course the UAW wasn’t going to get 40% but you have to hang on to that number until you get some of the other needed conditions. The UAW represents the workers. Period. They are supposed to get the best deal that they can for the members that they represent. If you go to court being represented by an attorney you certainly want him or her to represent you to the fullest.
        There seems to be much jealousy going on for UAW members, the UPS Drivers (Teamsters), American Airlines pilots (46% increase), health care workers recent contracts and many more. To those jealous people I say: Join a Union, start a Union at your workplace. Don’t listen to the pundits that are saying that Unions no longer serve a purpose. Obviously, they are wrong!

        Reply
        1. Hank, this is the way I see it. If you are working for any of the BIG 3 and you feel your wages and benefits are inadequate, then just quit and find another job. Although you feel you have a right to an increase, you don’t, it’s a privilege to work for the company. Go out and see what other jobs are paying and get a reality check. If the companies didn’t pay their employees well, and they had a large turnover of employees, and if the product they made was of inferior quality, then the companies would say, maybe we should pay these employees more money and offer them better benefits. The market will soon dictate whether or not consumers buy the product. If you are running a company, and can’t afford to pay a lot for wages and benefits, you don’t. I do agree that the compensation packages to CEO’s and other top management employees are excessive. The companies argue we need to pay them big money in order to get good people. The same could be argued for the workers, if we don’t compensate our employees with good wages and benefits, we get bad product output. Who is right? Bottom line is, if you don’t like the money and benefits, then find something else.

          Reply
      2. And tens of thousands of future workers will get laid off as well. If they’re not competitive, GM will make layoffs.

        Reply
  3. Wageflation. Here it comes.

    Reply
  4. Euro and Japanese unionized auto-workers make as much or more then UAW.
    Instead of whining and moaning young Americans should take a break from stupid video games in mom’s basement and apply for a job in a Big 3 Plant.

    Reply
    1. I’d like to know your source … because I read that the average monthly salary for a Japanese autoworker is 365,000 jpy … which equates to roughly $2,565 usd per month. High salaries are $957,000 jpy per month, or $6,374 usd per month. The provided figures represent the median compensation that encompasses housing, transportation, and other perks. So, I’d say you’re spreading false information… they’re making far less than uaw members.

      Reply
      1. My source? What about yours ? Someone’s lower GI tract?

        Reply
        1. No, unlike you, my head is NOT up there. Simple research … that’s where you actually look up FACTUAL data provided out there on the web … and then make statements based upon your research. It appears YOU are the one that needs pull your head out of the GI tract!

          Reply
  5. We should all be reminded, the human cost of manufacturing a vehicle is always passed on in the vehicles pricing. Analyst have estimated that the proposed contract will add $900 to the cost of each vehicle manufactured. At some point, consumers will balk and move on to more affordable vehicles. When that happens, here come the asian competitors and the Big 3 will close up shop.

    Reply
    1. “At some point, consumers will balk”

      We’re already there with the 8-year auto loan. The creative financing can only stretch so far, and will likely tip us into the next severe recession. We don’t want to give up our American iron, but with runaway pricing on everything we might not have a choice.

      Reply
    2. U.S. consumers were already moving purchases to even more Asian competitors. Look at Kia/Hyundai’s market share and growth over the past couple years. They’re coming for the Big 3’s lunch.

      I’ve been trying to sound the alarm bells for years, but no one is listening. This latest UAW hostage situation will put at least two of the autos into bankruptcy within 5-7 years. Probably Ford and Stellantis.

      … but don’t rule out GM batting 1.000 into the OB circle if they keep throwing so much at EVs.

      Reply
      1. “ UAW hostage situation?” Don’t you think that’s a little extreme? The Labor Laws in this country still allow workers to go on strike to improve their work environment, wages and working conditions. So the companies can shut down plants, cut or reduce benefits, layoff workers, crack the whip on workstation production but if the workers go on strike it’s viewed as a hostage situation?

        Reply
    3. Also, don’t forget the impact to auto insurance premiums. As cars, labor, and the parts needed to repair them get more expensive, auto insurance premiums also increase.

      Reply
  6. They look like they settled their strike. This is what happens now. The new vehicle price goes up ,so there will be less in sales ,along with the push of EV’s and/or Hydrogen vehicles. So congratulations UAW ,you have voted yourself some layoffs.

    Reply
  7. ALL of you pro management people are nothing but jealous.

    Reply
  8. They should have locked the doors, and sent a message to the union that GM will not negotiate with terrorists.

    Reply
    1. And the Sticker on comparable foreign models are $1000s cheaper than the Big 3 .
      …. oh wait ….. nevermind .
      Of course you could by a cheap Kia or Hyundai, and have a 13 year old thug steal it because the cheap-ass security sucks so bad .

      Reply
      1. You know can see what happened to Ford & GM’s lines up of sedans they have disappeared the Japanese & South Korean player have not, though you have to admit the massive move in Russian doll multi sized SUV has jumped a lot in recent times.

        Reply
  9. All the anti-union types here should walk the talk by never buying from the Big Three again.

    Reply
  10. And, now that the UAW wins this new contract, wait until 2028 when gm will have moved those skilled labor high paying jobs out of the U.S. to China, Brazil, Argentina, etc., etc. Then who wins? WTG Fain. Hip, hip, hooray.

    Reply
  11. Here is another realistic probability after they sign the contract. GM knows if they raise New Car prices ,their sales totals goes down. So to cover the new contract costs, along with moving more production out of the country,there will be layoffs. They will produce their goals with less workers.

    Reply
    1. Frank, by building EV’s alone, the big 3 will already be using less labor in the future. People will retire and just not be replaced anymore. But all the whiners here can feel warm and fuzzy all over knowing that instead of your friends and neighbors building their new vehicle, the parts they use for the EV’s were assembled by some child labor in a 3rd world country for $1.00 an hr like their shiny new I-Phone was.

      Reply
      1. Correct ,I have mentioned the production of EV’s will cause the UAW a lot of headaches.

        Reply
  12. The $900 price increase estimate was made by a Ford exec., not by a knowledgeable industry analyst. Here is how it works folks: Price is not so much a function of cost of manufacture as it is a function of competition. If Toyota, Honda, etc. keep their prices the same (which is unlikely) then the Big 3 will need to eat the extra cost of production (which, by the way, is unlikely to hit $900 until perhaps the final year of the contract). Do you think Toyota, Honda, Mercedes, etc. workers are going to be happy making 25% less than their UAW competitors? Unlikely. The UAW will be trying to recruit those workers into the UAW, showing them how they help their members. The non union manufacturers will be wanting to increase wages to slightly less than the new UAW contract (and lower benefits also) in order to avoid their employees unionizing.
    The companies can do that by raising prices a little. Do you think prices went up less than $900 over the past 4 years when there were 25% lower wages? Of course not. Sellers will sell for whatever they can get and buyers will buy what they want and can afford.
    UPS wages went up similarly this year. Did you stop having packages delivered to you? Highly unlikely. You probably moaned about it and moved on. That is pretty much what will happen with auto prices and auto sales as well. What may depress auto sales in future years is the fact that electric autos (to the extent they are adopted by the public), will require less service and repairs over the years and will last a little longer than ICE vehicles, so people will be less incentivized to hurry up and buy a new one. Still, the overall economy, interest rates and who know what else will influence future sales as much as logical concerns such as repair expenses.

    I wondered if new President Fain’s new way of negotiating (without a single company target, for example) was wise, but it seems to have produced results. I give him and the union credit for hanging in there and getting their fair share.

    Reply
  13. GM just needs to cancel the battery plants they were planning to build….they won’t need them or the workers going forward.

    Reply
  14. Here is something else to note. A massive analysis shows that EV’s will cost tens of thousands of dollars more in taxpayer funded incentives. Published by the Texas public policy foundation shows that Biden’s use of taxpayer dollars may be the only thing propping up the EV industry. It showed an EV will cost $48698.00 more over a ten year period without the massive $22 billion handout to manufactures and owners. So if the government stayed out off the EV business the cost would be unbearable for car makers and owners. Which in the long run will be a disaster all the way around for all involved.

    Reply
    1. Gee, a study on how bad EV’s are coming out of TX (oil country) how surprising! Seems like ICE and EV’s could coexist for some time. At least until the time that we run out oil. I have no idea when that will be however there’s not an endless supply. Don’t get me wrong, I love my ICE vehicles but it’s a reality that oil/gasoline will run out at sometime. EV’s might not be the alternative but we will need one.

      Reply
  15. Prices will go up. No idea how much but they will. And that doesn’t set too well because I’ve been thinking about a new truck and so it probably won’t happen. How many times did gm raise prices on trucks in ’22? Seems like between 4-6 times. Plus, don’t forget the freight going up. These were substantial increases. Now, with an increase in labor costs, there will be increased vehicle prices. Apparently they don’t need much of an excuse to raise prices. They certainly won’t be going down in price and unless they do I can’t afford it. Also, I find most experts, armchair or otherwise, regardless of field, really have no clue. So, after buying 43 vehicles in the last 38 years and all but three were gm, I’m done. I’ve reached my limit. Not mad about it, just taking my own advice and done buying new. I’ve been priced out.

    Reply
  16. Wages should be based on the market and what other automakers are paying their employees.

    Reply
  17. 25%? over the 4.5 years that sounds like a pretty good deal, inflation is predicted to rise about 9.5% inflation over that period. When you buy food anything these days it always seems a lot higher, only downer will be the prices of cars & trucks will increase a bit for customers, very expensive EV’s will simply be cars that only the rich few buy in the future.

    Pleased to here there is bit of a reality check push back against expensive EV’s by the American consumers, and Ford, GM, Stellantis, Toyota & VW CEO’s at the moment and all this net zero crap pushed by Governments worldwide at the moment. ICE cars & EV’s should have co-existed together with no bans on ICE, keep on improving ICE emissions standards a bit and let the consumers choose what they want to drive, in the days when the horse & cart died out they never had horse bans for farts 70-120kg (154-264 lbs) of methane a year, or imposed it & draconian taxes like they have in Europe $2,500 fines for every ICE car you make, the ICE it never got $7,500 tax incentives to buy them, ICE simply replaced the horse & cart because it was the better technology, EV’s should be treated the same way, when proper solid state batteries do finally arrive and become cheaper the consumer will naturally take over, we should let the consumer the market decide not the few echo friendly Davros jet set in their Rolls Royces hypocrites..

    Reply
  18. I would want to get every penny I could but I was never in a position to put the screws to the company I would have to accept what was offered or move on.
    Some business rag said these new deals will cost a minimum $850 per vehicle so the MSRP of 50k P/U, where they actually make their money, in ’19 which is now about 65k will be 67k, so if you were holding out forget about it.

    Reply
  19. It’ll be interesting to see how this all plays out in the next four years for the domestics. Much change is coming.

    Reply
  20. Invest in your children and grandchildrens future by having them apply for a factory job at any of the big three. They’re guaranteed to make six figures with no college education required.

    I feel like an idiot pursuing a medical career. At least now I have the possibility of buying a Genuine GM front license plate bracket from my dealer.

    Reply
    1. Sounds like a “Win-Win” situation to me.
      1. You don’t waste your hard earned money by giving it to Marxist institutions of lower learning where they teach mush Mellon kids to hate the USA.

      2. Your Kids and Grandkids will learn a proper work ethic instead of expecting to stay in your basement till their 35 because no one wants to hire them after they’ve obtained a liberal arts degree in basket weaving for $120,000.

      Reply
      1. You still get more than enough marxist B.S rhetoric from the UAW. Especially if you want to be part of the in crowd.

        Reply
  21. The UAW may have won this battle but will lose the war when the big three USA automakers move most if not all manufacturing out of the USA. I have been a GM customer all of my life. It is very sad to see over government regulation and unregulated unions destroying our USA automakers. The swamp dearly needs to be drained.

    Reply
    1. Just how would you like to see the UAW regulated? They already have to comply with the US Department of Labor and operate within the statute of the National Labor Relations Act. They don’t take Government money so just how do you want them regulated? Do you want separate laws for the UAW and different laws for other Labor organizations?

      Reply
    2. Marcus,
      You really should just let the big boys speak. This is not a thread for the ignorant, uninformed and uneducated!

      Reply
  22. I have a friend who works as an A level mechanic at a GM dealership. He’s been doing that for decades. He’s excellent so the service manager hands him the all the grunt jobs. Engine, trans replacement, etc. He’s got a mason dump truck in his stall this week. Last week, it was a Sierra work van with a blown engine. Fun and bruised knuckles. He’s on “piece work ” which to the uninformed means the tech gets a fixed amount of time to do the job. Beyond that, he loses money on the job. The book almost always short changes techs. His take home pay pales in comparison to assembly line workers. I’ve personally visited the GM assembly plants in Linden , NJ and St. Louis, Missouri. Guarantee that dealership techs are much more skilled and have more diversified skills. And work much harder.
    Years ago, I tried to convince him to quit the dealership and apply at an assembly plant. He didn’t and now at age 71, he’s awfully sorry he didn’t.

    Reply
  23. This from my dealer…disappointed is an understatement. GM should have celebrated the end of Camaro production with all orders being processed! 😠
    Chevrolet has ended any further processing of Camaro orders. Unfortunately, your Camaro order will not be built. The UAW strike, part shortages, and supplier issues has ultimately played into their decision to end any further scheduling of Camaro orders moving forward.
    Joe Lopez
    Department Performance Administrator
    The Ancira Winton Chevrolet Inc.

    Reply
    1. Unless you are hung-up on the safety features or want to use it as a daily driver also real muscle cars are old cars that you build, cause to be built or buy ready built.
      gm does not care about performance buyers they make a boatload on Corvettes and anything in the performance catalog, wink wink “for use in pre-emissions and off-road vehicles only” but if you go on the Hot Rod magazine power tour and have a breakdown they have gm performance techs to rescue you even if you are emissions non-compliant.

      Reply

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