GM CEO Mary Barra and UAW President Shawn Fain participated in Thursday’s talks. GM and UAW were very close on economic issues, but some final issues, including the use of temporary workers, remained under discussion, the sources said.
Ford agreement, a precedent
The agreement with Ford, which still must be ratified by union members, includes a 25% salary increase over the four and a half years of the contract, an increase in retirement contributions and the elimination of lower wage levels for workers at certain Ford parts operations.
The time needed to reach the maximum wage is also reduced from eight to three years, and the UAW gains the right to strike in the event of plant closures.
Lawler said the labor deal will add between $850 and $900 per vehicle in higher labor costs for U.S. production.
According to the UAW, the agreement represents a total salary increase of more than 33% when capitalization mechanisms and the cost of living are taken into account.
The agreement, which could serve as a model for agreements with GM and Stellantis, represents a total salary increase of more than 33% when capitalization mechanisms and the cost of living are taken into account, according to the UAW.
“We know it’s a record-breaker,” UAW President Shawn Fain said in a videotaped speech Wednesday night. “We know it will change lives. But what happens next depends on all of you.”
Ford’s deal reverses concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were headed for bankruptcy and Ford mortgaged assets to stay afloat.
The companies are now collectively in a better position, although they have all stated that excessive wage increases would undermine their ability to compete in the coming years with lower-cost manufacturers such as Tesla, the leading seller of electric vehicles.
Ford’s chief financial officer said Thursday that the strike had cost the automaker $1.3 billion in profits and 80,000 vehicles.