The crippling strike affecting General Motors has officially come to an end as the UAW has announced a majority of members have approved an agreement which was struck on October 16th.
The UAW didn’t mention the final tally, but it was expected to be a close vote as a number of members were upset about plant closures and weak guarantees that the automaker wouldn’t idle plants mid-contract.
However, as UAW Vice President Terry Dittes stated, “General Motors members have spoken.” He added, “We are all so incredibly proud of UAW-GM members who captured the hearts and minds of a nation. Their sacrifice and courageous stand addressed the two-tier wages structure and permanent temporary worker classification that has plagued working class Americans.”
Also Read: GM And UAW Reach Tentative Agreement As Strike Continues
More importantly, the union confirmed the strike is officially over. It lasted 40 days and the union says it was the “longest automotive strike in 50 years.” The strike had a devastating impact on General Motors and analysts have estimated it cost the company more than $2 (£1.5 / €1.8) billion.
GM praised the news and said the agreement provides hourly workers with a “world-class wage, benefit and profit-sharing package.” As the company explained, it provides 3% wage increases or 4% lump sum payments in each of the four years of the contract as well as an $11,000 (£8,575 / €9,927) signing bonus for regular employees. The profit sharing cap has also been removed and there will be a “clear path for temporary employees to transition to permanent employment after three years of service.”
The contract also saved the Detroit-Hamtramck Assembly plant which was originally slated to be closed. GM pointed this out and confirmed rumors that the plant will build an “all-new electric pickup truck.” The truck could be badged as a Hummer and GM said there was the “potential for future new products to be built in the city of Detroit.”
In a statement, GM CEO Mary Barra said “We delivered a contract that recognizes our employees for the important contributions they make to the overall success of the company, with a strong wage and benefit package and additional investment and job growth in our U.S. operations.” She added, “GM is proud to provide good-paying jobs to tens of thousands of employees in America and to grow our substantial investment in the U.S.”
