On October 25, 2020, Detroit’s Big Three automakers announced that a tentative agreement for a UAW-negotiated four and a half-year contract had been reached. The agreement will cover 200,000 UAW members at Ford, GM, and Fiat-Chrysler in the United States, providing extensive and secure wages, benefits, and job security for workers.
Once the contract was presented to the union membership for a vote, approval seemed likely as UAW International President Rory Gamble said in a statement, “We have achieved many gains in this agreement that will greatly impact our members today, tomorrow and in the future”.
Despite high levels of optimism, current tensions between the union and automakers had caused doubts over the negotiations outcome. These tensions stemmed from the harsh economic climate created by the Coronavirus pandemic, particularly in the automotive industry where sales had seen a decline of 20%.
In the end, the vote resulted in an overwhelming majority of yes votes, with 90.3% of members in favor of the proposed contract. This agreement is expected to bring quality job stability to workers who have had to endure the financial hardships caused by the pandemic. Additionally, the contract includes improved wages, larger bonuses, and a secure health care coverage and retirement plans. With great emphasis on job security, workers will have greater peace of mind knowing their job is secured, even if the auto industry faces any economic difficulties in the future.
The four and a half year length of the contract is unique because it is normally shorter in length. It is seen as a sign of strong solidarity between the union and the automakers, as it allows both sides to benefit from the agreement. The UAW and the Big Three automakers are now ready to move forward, with the agreement providing a bright future for working families.