UAW: Reaching tentative agreements with the Big Three "better unite our union"
(CBS DETROIT) - With General Motors finally reaching a tentative agreement with the United Auto Workers, the union says reaching a deal with the last of the three major automakers is a huge win.
GM's agreement is similar to Ford and Stellantis' 25% base wage increase through April 2028. GM agreed to get rid of the wage tiers and increase the starting wage by 70%.
READ: How UAW contracts changed with new Ford, GM and Stellantis deals
The agreement would reinstate the cost of living allowances (COLA) and a three-year wage progression. GM is also allowing the right to strike over plant closures, something that the company initially would not give in on at the beginning of the strike.
The automaker was the last of Detroit's big three automakers to reach a deal, followed by Ford on Wednesday and Stellantis on Saturday. Like Ford and Stellantis, the UAW National GM Council will meet to go over the agreement before it makes its way to the members for a vote.
"All three of the Big Three now have a tentative agreement with the UAW. All three agreements break records and better unite our union," the UAW said in a statement.
In a video posted on Monday, UAW President Shawn Fain said the union will suspend its strike against the three automakers. Additionally, GM workers will be able to return to work while the agreement is under review.
"As I've said repeatedly, the membership is the highest authority in this union. We are bringing this tentative agreement to you because we wholeheartedly believe that our strike squeezed every last dime out of General Motors," Fain said.
Leaders react to GM, UAW tentative agreement
Michigan Gov. Gretchen Whitmer congratulated the union and the automaker for reaching an agreement.
"This agreement supports the hardworking men and women of the UAW and ensures that GM can continue to grow and expand right here in Michigan, where they were established over a century ago," Whitmer said.
"I urge swift ratification of this deal so we can keep competing with other states and nations to lead the future of mobility. I applaud the UAW for standing up for working families and taking action to help us build a stronger middle class in Michigan. Let's keep showing everyone how we can build the next generation of cars and trucks while supporting workers."
Sandy Baruah, CEO of the Detroit Regional Chamber, issued the following statement on Monday:
"The tentative agreements make UAW workers among the best-paid, most benefit-supported manufacturing workers in the world. While these agreements are good news, they do come at a substantial cost.
"In addition to the $10 billion economic hit this prolonged strike cost our economy – including workers and businesses outside the Detroit Three – these agreements place additional competitive pressures on our companies and the state.
"These agreements will increase the cost of vehicles made by UAW workers by hundreds, even a thousand dollars, and make competing companies' offerings more attractive. As the home of the Detroit Three and the most automotive manufacturing, Michigan will have to work overtime to send the message that it is open for business."