By The United Auto Workers (UAW) announced on Monday that it has reached a tentative agreement with General Motors Co. This marks the last of the Big Three carmakers to have such a deal with its workers. As a result, GM workers on strike will be returning to their jobs as the agreement now undergoes a ratification process.
Record Contract Resulting from Record Profits
Similar to the agreements with Ford and Stellantis, the UAW stated that the GM agreement has transformed record profits into a record contract. In fact, this new deal offers gains that are valued at more than four times what was included in the union’s 2019 contract.
A Break with Tradition
In 2019, the UAW had a strike at GM exclusively. However, this year deviated from tradition as workers from multiple Big Three facilities participated in the strike. This move demonstrated the workers’ determination and unity.
Significant Wage Increases and Adjustments
According to the UAW, the tentative agreement with GM provides a 25% base-wage increase over the span of the four-year contract. This will result in a cumulative raise of 33% for the top wage, along with cost-of-living adjustments, bringing it to over $42 per hour.
Furthermore, GM’s starting wage will experience a significant increase of 70%, compounded with estimated cost-of-living adjustments, bringing it to over $30 per hour.
GM’s Stock Performance
Following the announcement, GM’s stock experienced a slight decline in the extended trading session on Monday after initially closing the regular trading day with a 0.5% increase.
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