Striking United Auto Workers (UAW) members at the General Motors Lansing Delta Plant picket in Delta Township, Michigan, September 29, 2023.
Rebecca Cook | Reuters
DETROIT – Contract negotiations between United Auto Workers and General engines will meet again on Friday afternoon after intensive discussions took place on Thursday evening and in the morning, according to sources familiar with the discussions.
The potential deal is based on a tentative agreement the union reached on Wednesday Ford engine and appears to be nearing the finish line, said three sources who agreed to speak on condition of anonymity because the conversations are private.
Both GM CEO Mary Barra and UAW President Shawn Fain took part in the marathon negotiations, but the union leader did so virtually, two of the sources said.
Fain tried to negotiate with GM and Chrysler’s parent at the same time Stellantis, who organized talks with the union about 30 minutes apart. Stellantis, including North American COO Mark Stewart, also held extensive talks last night, two sources said.
Stellantis also appears to be closing a deal, but it was not immediately known when the parties would meet again.
The sources said the talks remain fluid and could change. Spokespeople for GM, Stellantis and UAW declined to comment on specific details of the talks.
Ford’s deal included a 25% pay increase over the life of the agreement, including an initial 11% increase. The pay increases and benefits cumulatively increase the top wage to more than $40 per hour, including a 68% increase for the starting wage to more than $28 per hour.
It also restored cost-of-living adjustments, reduced the eight-year path to top wages to three years, and allowed the right to strike due to factory closures, among other significantly improved benefits.
Any tentative deals still must be approved by local UAW leaders and then ratified by a simple majority of each automaker’s union-represented employees.
The progress came after contentious negotiations between UAW leaders, including Fain, and company executives, which saw thousands of union members walk out of factories and onto picket lines starting on September 15.
The strikes have jointly affected GM, Ford and… Stellantis billions of dollars in lost production. Ford said Tuesday that the union’s strike has cost the union $1.3 billion and that the deal, if ratified by members, would increase labor costs by about $850 to $900 per vehicle produced.
The proposed agreements are record-breaking for the union, which has been far more confrontational and strategic during the talks than in recent history.
The union initiated negotiations with all three automakers at once, breaking with recent history in which UAW leaders negotiated with each automaker separately, selected a lead company to focus on and then shaped the remaining deals based on a lead tentative agreement .
It is not immediately clear to what extent the labor agreements will increase labor costs for the companies, which had argued that giving in to all the union’s demands would affect their competitiveness and even their long-term viability.
Deutsche Bank recently estimated the total cost increase from the Ford agreement at $6.2 billion over the life of the agreement; $7.2 billion at GM; and $6.4 billion at Stellantis.