UAW and GM Reach Tentative Deal on EV Investments and Wages

Investments in Electric Vehicles and Wage Increases for U.S. Auto Workers

The United Auto Workers (UAW) union has announced a tentative contract agreement with General Motors (GM) that includes plans for significant investments in electric vehicles (EVs) and wage increases for thousands of U.S. hourly workers. This deal aims to address wage disparities among different units within GM’s operations.

Details of the Agreement

The UAW has provided further details about the 4-1/2 year tentative deal with GM, which was initially announced in October. The agreement follows the pattern set by Ford and Stellantis, providing a 25% base wage increase for full-time workers. This increase could potentially reach up to 33% when factoring in newly negotiated cost-of-living allowances.

Temporary workers will also benefit from this agreement, as they will have a faster path to full-time status and could see an immediate wage rise of around 50%. Moreover, temporary workers who convert to full-time status have the potential to more than double their hourly pay over the duration of the agreement, according to the UAW.

Equalizing Wage Levels

The GM agreement aims to bring wage levels in line with those paid to assembly plant workers, affecting over 7,000 UAW workers in GM component plants, service parts warehouses, and subsystems operations. This move marks a significant change in GM’s labor cost strategy, as it will largely undo the practice of maintaining lower wage tiers.

Positive Outlook

UAW President Shawn Fain expressed optimism about the deal, stating, “We won this round” in a video address on Saturday. With preliminary approvals for all three contracts now complete, UAW leaders will focus on securing “yes” votes from rank-and-file union members at the Detroit Three automakers.

This tentative deal between UAW and GM represents a step forward in addressing wage disparities and promoting investments in the growing EV market. It is expected to have a positive impact on thousands of U.S. auto workers and contribute to the overall development of the automotive industry.