The United Autoworkers announced Friday that its members had ratified a contract with General Motors, formally ending a 40-day strike that cost the automaker an estimated $2 billion. The deal is likely to form a template for the union’s upcoming negotiations with Ford and Fiat Chrysler.
The new contract provides members an $11,000 signing bonus, performance bonuses, two 3% annual raises and two 4% lump sum payments while holding healthcare costs level. GM would invest $7.7 billion more directly in its plants and create up to 9,000 new jobs.
“General Motors members have spoken,” said UAW Vice President Terry Dittes. “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.”
“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,” said GM Chairwoman Mary Barra.
A deal was first announced on Oct. 16, but the union said the walkout would continue until its 48,000 GM members ratified the deal. UAW said Friday that its members would now return to work
“We want to once again thank our members’ families and their local communities for their outpouring of support,” said UAW President Gary Jones. “Our members not only joined together in solidarity but felt the support of their whole community throughout this important stand.”
