UAW Reaches Tentative Agreements with Big Three

National negotiators for the United Auto Workers have reached a tentative agreement with General Motors, the final OEM of the Big Three, after reaching tentative agreements with Ford on Oct. 25 and Stellantis on Oct. 28.

GM's reported agreement came on Oct. 30, days after UAW's strike against the automaker expanded on Oct. 28, with workers at its assembly plant in Spring Hill, Tennessee, walking off the job.

The move effectively ends the first simultaneous strike against the Detroit Three automakers with record wage and benefit hikes, according to Reuters.

In total, nearly 50,000 auto workers were on strike at various manufacturing facilities across the country between the three OEMs.

Breaking Down the Agreements

UAW President Fain and Vice President Rich Boyer gave an overview of the agreements, while outlining next steps in the ratification process. 

This is a summary of what the team negotiated with Ford: 

• The agreement grants 25% in base wage increases through April 2028.
• It cumulatively raises the top wage by over 30% to more than $40 an hour.
• It raises the starting wage by 68%, to over $28 an hour.
• The lowest-paid workers at Ford will see a raise of more than 150% over the life of the agreement.
• Some workers will receive an immediate 85% increase immediately upon ratification.

Ford released a statement after reaching the tentative agreement, saying in part, "We are pleased to have reached a tentative agreement on a new labor contract with UAW covering our U.S. operations. Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers. We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full lineup to our customers again."

These are details on UAW's negotiations with GM:

• The agreement grants 25% in base wage increases through April 2028.
• It cumulatively raises the top wage by over 33% to more than $42 an hour.
• It raises the starting wage by 70%, to over $30 an hour.
• Current retirees and surviving spouses will receive five payments of $500.

According to UAW, GM's agreement kills several wage tiers that have divided the union. Additionally, it will" lift up those members who have been left behind and unify our membership for the fights ahead," a UAW press release stated.

The workers who will be moved to the main production rate include General Motors Components Holdings workers, who make and distribute automotive components, as well as Customer Care & Aftersales workers, and workers at GM Brownstown, which produces lithium-ion batteries for several vehicle models.

For the first time since they organized in the 1990s, GM salaried workers will also receive a general wage increase, equivalent to that of hourly workers.

The deal also brings two key groups into the UAW GM Master Agreement: workers at Ultium Cells and GM Subsystems LLC. According to UAW, both of these groups have previously been left out of the Master Agreement, and have been told they'd never come in.

GM Chair and CEO Mary Barra released a statement after the agreement was made, saying, "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."

Here are details on what the UAW team negotiated with Stellantis:

• The agreement grants 25% in base wage increases through April 2028.
• It cumulatively raises the top wage by over 33% to more than $42 an hour.
• It raises the starting wage by 67%, to over $30 an hour.
• The lowest-paid workers at Stellantis will see a raise of more than 165% over the life of the agreement.
• Some workers at Mopar will receive an immediate 76% increase immediately upon ratification.

Stellantis North America COO Mark Stewart released a statement after the tentative deal was reached, saying in part, "I would like to thank all the negotiating teams who have worked tirelessly for many weeks to get to this point. We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers and execute our Dare Forward 2030 strategic plan to maintain Stellantis’ position at the forefront of innovation."

According to UAW, all three agreements reinstate major benefits lost during the Great Recession, including Cost-of-Living Allowances (COLA) and a three-year Wage Progression, as well as slashing wage tiers that have caused division within the union.

The agreements also improve retirement for current retirees, those workers with pensions, and those who have 401(k) plans. Additionally, they include a historic right to strike over plant closures, a first for the union.

Stellantis Deal to Reopen Idled Assembly Plant

According to Fain, Stellantis will reopen its Belvidere Assembly Plant in Illinois. That's after the plant idled production eight months ago, leaving 1,200 UAW members without jobs.

"From the strength of our strike, we are bringing back those jobs and more. Stellantis is reopening the plant and the company will also be adding over a thousand jobs at a new battery plant in Belvidere," Fain said.

What Are the Next Steps?

Union members will make the final decision on the agreements after they are reviewed by the UAW national councils for each OEM.

While working through the ratification process, Fain and Boyer are asking UAW members to return to work. 

Editor's Note: This story was updated on Oct. 31 to reflect the GM tentative agreement details.