Steel Markets
October 17, 2019
UAW/GM Reach Tentative Labor Agreement
Written by Sandy Williams
The United Auto Workers and General Motors reportedly reached a tentative four-year labor agreement on Tuesday, but it remains unclear how quickly operations will resume and how long before the automotive supply chain gets back to normal. The union has been on strike since Sept. 16, resulting in 30 facility closures and layoffs at GM plants in Canada and Mexico.
According to various reports, the UAW was successful in securing many of its demands. The new contract includes a wage increase of 3 percent over the next two years and 4 percent bonus payments in the final two years of the agreement. Newly hired workers will reach top pay in a shorter period and temporary workers are assured of a path toward full-time employment. Health benefit contributions by employees will remain unchanged. Workers will reportedly receive an $11,000 bonus upon ratification. GM has also promised to invest at least $9 billion in the company.
