The autoworker strike may be over as GM, Stellantis, and Ford agree to a deal with the United Auto Workers union, which has been on strike for roughly seven weeks. The strike has the potential to affect your local auto dealer by driving up prices and reducing selection if it continues. Repairs and maintenance at an auto dealer might also become difficult.
General Motors Gets On Board
GM became the last automaker to get on board with a tentative deal to halt the United Auto Workers strike. Previously, the UAW said it reached a deal with Stellantis shortly after reaching a deal with Ford. The strike has definitely thrown a wrench into the cogs of the auto industry and has hit the Big Three automakers hard to the tune of hundreds of millions of dollars each. The strike halted production and threw ice water on the transition into EV models.
Autoworkers were planning to extend the walkout to include several new GM plants, including one that makes engines in Tennessee. Then the news came out that GM had reached a deal with the workers. Previously, the UAW was able to make GM agree to add any future EV plants into the union’s master agreement. Autoworkers mainly want a fair transition to EV models that ensures they would be part of building the new EV models.
Considering that EV models contain far fewer parts than gas engines, autoworkers are understandably concerned that the transition to EV models could mean a serious loss of jobs across the industry.
Stand-Up Strike Goes Down In History
The UAW called the strike a historical one that represents a milestone in the movement and for the union. They also purposely chose April 30, 2028, as an expiration date because it would allow for a strike on International Workers Day on May 1st. The UAW announced that unions around the country are invited to join in on contract expirations on that date so that the next strike would be even more unified.
It’s not clear yet what GM agreed to with the UAW. But the Stellantis agreement was very close to the one with Ford, adding a 25% increase in wages for union workers during the four-year contract. That means it’s likely that GM agreed to something similar to end the strike.
The good news is that some of the dire predictions for your local auto dealer are now not likely to happen. Some of these predictions included higher prices, fewer options, and repair difficulties for GM and Stellantis vehicles.
Strike Timeline
The UAW began striking early in September of this year when 13,000 workers at GM, Stellantis, and Ford walked off the job. The goal of the strike was to pressure the Big Three automakers for better pay, pension restoration, and improved working conditions. Initially, the strike had only a fraction of union workers participating, which gave them options to increase the pressure by adding more strikers and staying on strike for a longer period.
It’s clear that this strategy worked since the Big Three managed to come to an agreement with the UAW in under two months. Now, it’s unlikely that you will see any effect on your local auto dealer.
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