UAW Members Ratify Tentative New Deal With General Motors, Ending 40-Day Strike
It was the longest walkout at GM since 1973, costing the company billions and delaying the production of two key vehicles.

It appears the 40-day General Motors strike has come to an end. The United Auto Workers and GM yesterday ratified a new four-year labor contract that includes wage increases and the end of a controversial two-tier wage structure negotiated during the financial crisis. The UAW strike had kept three GM plants idle, costing the company several billion dollars, according to estimates, and causing delays in production of the new Chevrolet Blazer and C8 Corvette.
The new contract, reportedly voted in with 66 percent of skilled-trades workers and 56 percent of production employees in its favor, benefits the UAW in the form of bonuses and wage increases for workers, while laying out future product plans for the General.
The agreement calls for the closing of a major training facility operated by the UAW and GM, supposedly stemming from allegations of corruption revealed during a federal investigation, involving officials at the union and the automaker. The pact is expected to raise the top wage rate for full-time employees to $32.32 an hour by the end of the contract. Full-time workers will be eligible for an $11,000 ratification bonus, while part-time workers will get $4,500, with partial payment commencing over the next month.
The automaker agreed to invest around $7.7 billion into its U.S.-based assembly and manufacturing plants to help create or maintain about 9,000 jobs. With this trajectory, some believe the total investment could exceed $9 billion as the plan could tentatively carry on through 2023.
Part of the deal includes GM’s plan to invest more in electric vehicle production, with around $1.3 billion going toward the currently inactive Lordstown, Ohio plant. This will include a joint venture with another company to begin battery-cell production for new models. GM’s EV initiative collectively involves $3 billion of the total investment, building a new lineup of battery-powered trucks and vans, some of which may be included in the possible revival of Hummer as a premium electric truck and SUV brand.
The Detroit-Hamtramck plant is also said to be in line for a revival as part of the automaker’s EV strategy.
With its GM squared away, the UAW will shift its focus to contract negotiations with Ford Motor Company and Fiat-Chrysler Automobiles.
-
RELATEDUAW Extends Strike One More Week After Reaching Tentative Deal With General MotorsThe new contract would give raises and bonuses to most employees, but nothing is official until both parties sign.READ NOW
-
RELATEDUAW Strike Could Jeopardize GM's Own 2019 SEMA Show Cars and Trucks: ReportIndependent shops could also feel the pain if they can’t get their GM-sourced parts in time, while the show itself could be targeted by UAW picketers.READ NOW
-
RELATED2020 Chevrolet Corvette C8 Production Delayed by UAW GM Strike: ReportThe strike is reportedly interfering with plans to update the Bowling Green production lines.READ NOW
-
RELATEDChevrolet Blazer Production Halted in Mexico Over UAW Strike-Related Parts Shortage"Production of the Blazer will be down until the strike is done," said a GM spokesperson.READ NOW
-
RELATEDTalks of Electric Hummer Brand Revival Heat up as GM Works on New UAW Deal: ReportThe brand could reportedly introduce a premium, battery-powered SUV or truck starting at $100,000 by 2021.READ NOW