Tentative Agreement Reached Between GM and UAW

General Motors and the United Auto Workers (UAW) union have reached a tentative contract agreement, according to two sources familiar with the matter who spoke to Reuters. This effectively ends the first simultaneous strike against the Detroit Three automakers and includes record wage and benefit hikes.

Details of the agreement with GM, which was the last holdout of the Detroit Three, are not immediately available.

The agreement follows deals that were reached in the last few days by the union with Ford Motor and Chrysler owner Stellantis. Experts view these agreements as significant victories for auto laborers, as they signal the end of stagnant wages and painful concessions made by the union in the aftermath of the 2008 financial crisis.

Nearly 50,000 workers out of nearly 150,000 union members at the Detroit Three joined a series of walkouts that began on Sept. 15. The UAW’s strategy of escalating, targeted strikes caused the Detroit Three and suppliers to lose billions of dollars over a span of more than 40 days.

According to two sources, the GM workers will return to work once the agreement is officially announced. A GM spokesperson declined to comment.

Talks at GM were stalled on Saturday due to issues such as pensions and the speed at which temporary workers would receive permanent positions, according to sources.

At around 5 PM ET on Saturday, UAW workers at the Spring Hill complex went on strike, even as UAW President Shawn Fain and the UAW’s top negotiator at Stellantis, Rich Boyer, were preparing to announce the terms of the contract at the Chrysler parent company.

The three tentative deals demonstrate the success of the precedent-breaking strategy orchestrated by Fain and top union officials. For the first time, the UAW negotiated with all three automakers simultaneously, using the threat of strikes at key factories to initiate a bidding war among the companies to avoid further walkouts.

Fain ensured that most UAW members remained working in order to preserve strike funds. He gradually expanded the strike when negotiations stalled.

Fain repeatedly voiced his concerns about the Detroit Three automakers prioritizing executives and investors over workers, stating that the UAW’s success would benefit blue collar workers throughout the country.