United Auto Workers Union Widens Strike Against General Motors After Deal with Stellantis

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ICARO Media Group
News
30/10/2023 22h30

In a continued show of labor unrest, the United Auto Workers (UAW) union has expanded its strike against General Motors (GM) after reaching a tentative contract agreement with Jeep maker Stellantis. The escalated walkout began at GM's largest plant in North America, located in Spring Hill, Tennessee, just hours after the Stellantis deal was announced. With nearly 4,000 workers joining the already striking 14,000 employees at GM factories in Texas, Michigan, and Missouri, the UAW has significantly increased the pressure on the automaker.

The exact trigger for this latest round of strikes remains unclear, as the UAW has not provided an immediate explanation for the decision. However, the Spring Hill plant's production of engines for various GM plants, including those in Mexico, makes it a vital part of the automaker's operations. Vehicles such as the electric Cadillac Lyriq, GMC Acadia, and Cadillac crossover SUVs are manufactured at the Spring Hill facility.

Erik Gordon, a business professor at the University of Michigan, commented on the potential consequences of the Spring Hill walkout, stating, "The Spring Hill walkout affects so much of GM's production that the company is likely to settle quickly or close down most production." This added pressure on GM is driven by the UAW's desire to wrap up negotiations with all three automakers, including Ford, to avoid potential issues with the ratification of their tentative agreements.

The deal agreed upon by the UAW and Stellantis closely mirrors the one reached with Ford just last week, ultimately saving jobs at the Belvidere, Illinois factory that Stellantis had planned to close. The UAW has stated that the Stellantis agreement includes a commitment to build a new midsize combustion-engine truck at the Belvidere plant, along with the addition of 1,200 rehired workers and the creation of a new electric vehicle battery plant that will employ 1,000 workers.

GM expressed disappointment with the expanded strike at the Spring Hill plant, emphasizing the progress made in negotiations and their desire to reach a settlement as soon as possible. UAW President Shawn Fain criticized GM's refusal to come to a fair agreement, calling it "unnecessary and irresponsible."

Meanwhile, workers at the Spring Hill plant expressed surprise at the strike call but remained enthusiastic about the situation. Larry Montgomery, an assembly line worker at Spring Hill, stated, "Everybody's really fired up and excited."

The UAW will now hold a vote on the Stellantis deal, similar to the process being conducted for the Ford agreement. The Stellantis contract offers significant wage increases, including cost-of-living pay, that would result in a compounded 33 percent raise for top assembly plant workers. The deal also establishes a timeline for new workers to reach the top of the assembly pay scale within three years.

As negotiations continue between the UAW and automakers, the impact of these strikes on the industry will undoubtedly be closely monitored. With the inclusion of the Spring Hill plant, GM now faces intensified pressure to resolve the strike quickly or face production disruptions. The UAW's goal is to secure agreements that satisfy its members across all three automakers and prevent potential rejection of the tentative agreements by Ford and Stellantis workers.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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