On October 26th, United Auto Workers (UAW) union members voted to ratify a new four-year agreement with General Motors, ending a contentious strike that had dragged on since mid-September. The agreement was approved by 57.3 percent of voting members, with a majority of workers favoring the deal.
The strike began on September 15th, halting production at 31 GM plants nationwide and causing a loss of over $1 billion. Throughout the month-long strike, UAW members demanded higher pay, easier access to healthcare, improved job security, and more equitable profit-sharing arrangements with GM. After several weeks of negotiations, UAW President Gary Jones and GM CEO Mary Barra reached an agreement on October 16th that addressed all of the UAW’s demands.
Workers who voted in favor of the UAW deal cited improved wages, guaranteed profit sharing, and job security in their reasoning for approving the agreement. The deal provides for 2.5 percent annual wage increases each year for four years, as well as a 3 percent increase in premium pay for skilled trades workers. The company also agreed to additional investment in factories, in-sourcing jobs, maintaining product lines, and improving overall product quality.
The ratification of the UAW deal is a testament to the perseverance and tenacity of labor unions in the face of unrelenting corporate resistance. For decades, unions have served as the backbone of a strong and prosperous middle class, and they continue to be the driving force of economic equality. As this new four-year agreement takes effect, the UAW and General Motors are setting a precedent for future negotiations. Many labor organizations view the GM agreement as a model for future contract negotiations and labor solidarity.
Though the road to recovery for union workers may not be an easy one, the ratification of this agreement was an important victory for labor rights and wages. As union workers head back to work, the cooperation between UAW and GM symbolizes a newfound commitment to shared prosperity and a bright future for American workers.
