Source: Finance Association
Author: Xia Junxiong
① The Federation of American Automobile Workers (UAW) announced on Monday that employees of the three major US automobile manufacturers have officially approved the new contracts;
② As the voting results settled, the US automobile industry general strike finally came to an end, and the three major car companies were able to breathe a sigh of relief. If a new contract fails to pass, it may trigger a new strike, and in turn, it may be required to sign a more expensive contract.
On Monday (November 20) local time, the Federation of American Automobile Workers (UAW) announced that employees of the three major US automobile manufacturers have officially approved the new contracts.
UAW is one of the largest workers' associations in the US. Earlier, the union launched a strike against three automakers, General Motors, Ford, and Stellantis, to seek better conditions in the new labor agreement.
The strike continued for six weeks. After many rounds of negotiations, UAW reached an interim agreement with the three major car companies. The new contract includes a 25% increase in salary and the resumption of adjustments to living allowances. The increase in salary exceeds the sum of several labor contracts in the past 20 years.
Over the past two weeks, workers from the three major car companies voted on the proposed contract. The vote was taken by a simple majority vote, that is, a majority of members agree before it is passed.
UAW said 64% of workers from the three major car companies voted to approve the new contract. According to UAW's tracking of the voting situation, 70% of Stellantis employees and 69.3% of Ford employees voted in favor of the new contract. GM's voting results, on the other hand, were much closer; only 54.7% of members voted in favor.
Tracking shows that a total of about 103,000 employees participated in the voting, while UAW has a total of 146,000 members among the three major car companies, accounting for about 56% of the total number of workers in the US automobile manufacturing industry.
The new contract expires on April 30, 2028. As the voting results settled, the US automobile industry general strike finally came to an end, and the three major car companies were also able to breathe a sigh of relief. If a new contract fails to pass, it may trigger a new strike, and in turn, it may be required to sign a more expensive contract.
Automakers want to cut costs in the process of electrification, but they face higher labor costs. Ford estimates the new contract will increase labor costs by $850 to $900 per vehicle.
In this round of strikes, 9 assembly plants and 38 parts distribution facilities of the three major car companies were affected. Nearly 50,000 workers participated. The strike, which continued for more than 40 days, cost the three major car companies and suppliers billions of dollars.
After winning against Detroit's three major car companies, UAW turned its sights to Tesla and Toyota. Workers from these two companies did not join the union. UAW wants to form a union with Tesla and Toyota, and has received support from US President Joe Biden.
Editor/Jeffy