The United Auto Workers (UAW) announced a resounding 64% ratification by Detroit Three automaker workers for groundbreaking contracts, solidifying agreements until April 2028. Highlights include a 25% base wage increase, pushing the top wage up by 33% to over USD 42 per hour, and improved conditions for temporary workers.
In a social media video featuring President Joe Biden, the UAW promoted the “UAW Bump” showcasing raises at non-union automakers. The union now targets Tesla and foreign-owned plants after recent wage hikes announced by Hyundai, Toyota, and Honda.
President Biden voiced support, stating, “The UAW is fighting hard to ensure that all auto jobs are good, middle-class jobs – and I stand with them in that fight.”
UAW President Shawn Fain, fresh from Washington discussions on organising strategy, expressed readiness to extend influence. Fain noted increasing interest from Tesla workers, emphasising collaboration for a better future. “Now, we take our strike muscle and our fighting spirit to the rest of the industries we represent, and to millions of non-union workers ready to stand up and fight for a better way of life,” Fain said Monday.
Amidst favourable votes, some veteran workers dissented. Automakers anticipate higher labour costs, with Ford estimating an additional USD 850 – USD 900 per vehicle.
Ford CEO Jim Farley stressed the need for enhanced productivity, affirming the company’s path to full production schedules. GM, Ford, and Stellantis reported 55%, 69%, and 68% approval, respectively. According to Farley, “the reality is that this labour agreement added significant cost, and we are going to have to work very hard on productivity and efficiency to become more competitive.”
While GM CEO Mary Barra underscored that the deal “protects the future of the business” and ensures the continuation of good jobs across the United States, Stellantis COO Mark Stewart affirmed the company’s commitment to executing its 2030 strategic plan, including the launch of eight new electric vehicles in 2024.