The United Auto Workers union and General Motors reached a labor deal Monday after more than six weeks of strikes at vehicle plants owned by the “Detroit Three” across the U.S., CNBC reports.
What’s going on: GM is the last of the three vehicle manufacturers to reach a deal with the union following strikes that began Sept. 14. “Ford Motor was the first to reach a tentative agreement with the union, on Wednesday, followed by a deal with Chrysler-parent Stellantis on Saturday.”
- All three agreements must be ratified by UAW members before becoming final.
The impact: “The strikes have collectively cost GM, Ford and Stellantis billions of dollars in lost production. Ford said Thursday that the union’s strike has cost it $1.3 billion, and the deal, if ratified by members, would increase labor costs by roughly $850 to $900 per vehicle produced. GM said Tuesday the strike had cost it about $800 million.”
The impact: “Manufacturers welcome news of tentative agreements being reached to end the UAW strike,” NAM President and CEO Jay Timmons said today. “Small and medium-sized manufacturers around the country have endured the drastic economic consequences of these stoppages.”