The longest American auto strike in a quarter-century is finally entering its crucial phase. After weeks of targeted picketing, the United Auto Workers (UAW) is reportedly closing in on tentative labor agreements with both General Motors (GM) and Stellantis. If the pens finally hit the paper, it would signal the end of a grueling standoff that saw 45,000 members walking the picket lines and Detroit’s balance sheets bleeding cash like a punctured radiator.
Following the trail blazed by Ford, which reached its own tentative deal on last Wednesday, GM and Stellantis are now staring down a “pattern bargaining” nightmare. They are expected to match Ford’s economic package, which includes a massive 25% wage increase through early 2028, an immediate 11% bump upon ratification, and the return of the Cost-of-Living Adjustment (COLA). When you add the COLA to the guaranteed raises, some workers could see their pay jump by 30%, a figure that surely makes corporate accountants reach for the extra-strength aspirin.
The UAW’s strategy was as surgical as it was painful. By striking specific, high-profit plants, like GM’s Arlington facility and Stellantis’s Sterling Heights factory, they hit the “Big Three” where it hurts most. According to analysts, closing the Arlington plant alone could cost GM $130 million a week, adding to the $800 million they already lost in September and early October. Stellantis isn’t faring much better, with weekly losses estimated to hit $200 million.
The UAW is allowing Ford workers to return to their posts during the ratification process. This puts massive pressure on GM and Stellantis, as they now face the prospect of Ford returning to full capacity while their own production lines remain silent. As UAW Vice President Chuck Browning noted, the last thing these companies want is to “fiddle around” while their competitor speeds away.
While the union secured better 401(k) contributions and pension improvements for senior members, they didn’t get everything on their wish list. Traditional pensions for post-2007 hires and retiree healthcare remain elusive. Nevertheless, with 145,000 members watching closely, the finish line is in sight.
