After reaching a tentative contract agreement with Ford this week, the UAW has submitted a new offer to GM during their latest negotiations on Thursday, October 26th. The strike affecting the Detroit Three automakers has now reached its 42nd day.
This latest contract negotiations update was reported by Automotive News. While details of this new offer aren’t available at this time, it likely includes higher wage increases and other economic gains for union members, in addition to the right to strike over plant closures. GM’s latest offer to the UAW, submitted on October 20th, included a 23-percent general wage increase and 25-percent compounded increase over four years, the reinstatement of cost-of-living adjustments, a ratification bonus for all team members, a faster path to employment and wage increases for temps, a pension plan rate increase, and more.
After reaching the tentative deal with Ford, the UAW asked its members to pause their strike and go back to work, in a bid to put additional pressure on General Motors and Stellantis to agree on a new contract. The UAW’s members working at Ford facilities will receive all the details of the tentative contract agreement on Sunday, followed by a vote next week to ratify or not said contract.
The UAW strike currently affects 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. The General’s 18 parts distribution centers across the United States are also affected by the UAW strike.
During its Q3 2023 earnings presentation, General Motors estimated its strike losses at roughly $200 million a week and more than $800 million overall, but that was before the UAW announced the Arlington facility strike – considered to be the world’s most profitable auto assembly plant.
The effects of the strike also pushed 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.