2023-10-31 07:19:18
After six weeks of strikes, General Motors has also reached an agreement with the American automotive industry union UAW. Car makers Stellantis and Ford have previously signed an agreement with the powerful union.
This marks an end to weeks of strikes that cost the three manufacturers billions of dollars.
The deal with GM, the company behind Chevrolet and Cadillac, among others, is largely in line with previous agreements with its two competitors. For example, a wage increase of 25 percent has been agreed. GM’s unionized workforce must still approve the agreement.
Last week, both General Motors and Ford withdrew profit forecasts as a result of the strikes. According to Ford, the work stoppages have cost the company $1.3 billion (1.2 billion euros). GM said strike costs have risen to $800 million.
It was the first time that employees of the three major car manufacturers in the city of Detroit stopped working at the same time. At Stellantis, the parent company of Chrysler and Jeep, among others, thousands of employees in Canada also went on strike.
US President Joe Biden, who supported the union’s demands, said on Monday that he was satisfied with the agreement between the union and the three car companies. He called it a historic agreement and spoke of “good economic news”.
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