Some people have likened the UAW strikes to a game of chicken; whoever holds out the longest wins. In what looks to be a significant step towards ending the strikes in Canada, GM has relented in their negotiations with the union Unifor to reach a tentative agreement.
However, Unifor’s members still have to vote to ratify the new agreement, which is expected to happen shortly. The deal was reached just hours after thousands of workers walked out of multiple GM production facilities.
What Changed for General Motors?
Initially, GM was completely resistant to giving Unifor what it wanted, with pivotal sticking points being pensions, converting temporary workers into permanent employees, and supporting retiree income.
Lana Payne, the Unifor National President, cited that a permanent employment path and reduced time required to earn top pay (which was changed from eight years to four) were vital for the union because it has so many young members.
Payne also cited that the reality of these “key facilities” succumbing to work stoppages hit GM hard and put them in a position to finally have the “serious” discussions needed to resolve the strike.
GM’s shares reportedly closed out the day up 1.6 percent after work resumed at their “key facilities.”
It’s a good move on GM’s part too. The automaker is the most vulnerable of the Detroit Three, having the lowest number of new vehicles available. GM also suffers losses of “millions of dollars” daily in the United States as the UAW strike rages on.
It’s been estimated that they’ve also lost out on producing over 34,000 new vehicles since the strike began on September 15. GM has also been forced to lay off over 2,000 workers due to the strike.
In Other Strike News
Roughly 4,000 UAW truck workers have joined the strike.
The MACK truck workers joined the 25,000 workers currently picketing Ford, Stellantis, and GM plants across the US. The decision shocked the head honchos at MACK because a tentative agreement (like the one just reached between Unifor and GM in Canada) had been agreed upon, but it failed to pass the union vote to be ratified.
In a staggering sign of rejection – reportedly 73 percent of UAW MACK workers voted against the tentative agreement, prompting walkouts at production facilities in Florida, Maryland, and Pennsylvania.
The leading cause of the proposed contract’s rejection was that MACK workers didn’t feel that a 19 percent pay raise was adequate, citing just how hard inflation has hit them. Like their Candian counterparts, the Mack workers also want to shorten the necessary time to reach maximum pay.
While the UAW’s recent talks with The Detroit Three have reportedly seen “significant progress” being made on the key issues, there still doesn’t appear to be an end to the strike against them.