Yahoo Autos UAW and GM Reportedly Reach Tentative Agreement
The UAW Strike against the Big Three is seemingly drawing to a close, as General Motors reportedly reached a tentative agreement with the union on Monday following six weeks of strike actions. According to Bloomberg, the deal was closed along similar lines as those Ford agreed to back on October 25.
The tentative deal reportedly meets many of the Union’s contract goals. General Motors will reportedly increase the hourly pay of union employees by 25 percent, and will also include a cost-of-living allowance as part of the four-plus year union contract. While Bloomberg’s source was not technically able to speak publicly about the situation, they stated that the deal has been sent back to GM union members for approval. Expect a vote on the matter in the coming days.
The agreement comes after the UAW escalated its walkout tactics over the weekend at General Motors' Spring Hill Manufacturing site in Tennessee, a decision which came after the union inked deals with both Ford and Stellantis. The additional strike saw 4000 employees in Tennessee join some 14,000 other striking GM employees in Michigan, Texas and Missouri. It was just one of eight production facilities, along with 38 parts distribution centers targeted during this historic strike by the UAW. Once the deal is finalized, it will be time for automakers to get back to full capacity before the year's end. That'll be important for their bottom lines, as the strike had a serious financial impact on all three companies' performance this quarter. In fact, The Detroit Free Press states that GM alone was spending more than $200 million a week on the strike, not including the cost associated with the Spring Hill plant, nor the ever-important Arlington Assembly responsible for pickups and SUVs. An announcement from the UAW with full contract details should be available once a vote on the tentative contract takes place this week.
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