General Motors (NYSE: GM) and the Canadian labor union Unifor have reached a tentative agreement following a strike by 4,300 workers at three GM facilities. The strike, which lasted approximately 12 hours, had the potential to disrupt GM’s profitable full-size truck production.
However, it ended after GM agreed to a pattern agreement similar to the one reached with Ford Motor Company last month, which includes wage increases of up to 25%.
Unifor National President Lana Payne emphasized the significance of GM agreeing to key items, such as pensions, retiree income support, and the conversion of full-time temporary workers into permanent employees. Additionally, the agreement will shorten the time required to reach top pay from eight years to four years, benefiting younger Canadian GM workers.
While the agreement is seen as a positive development for workers, the final approval depends on the ratification vote. GM worker Darrell Colley expressed relief but acknowledged that the process isn’t complete yet.
As a result of the agreement, GM shares closed up 1.6%, and work resumed at all three facilities in the afternoon. GM stated that the deal acknowledges the contributions of its represented team members with substantial increases in wages, benefits, and job security.
The strike by Unifor workers was triggered by GM’s reluctance to match the contract previously negotiated with Ford, using the “pattern bargaining” approach. This strike further complicated GM’s situation in the United States, where it had been experiencing daily losses due to the United Auto Workers (UAW) strike, which started on September 15.
GM had lost a substantial number of vehicles in production during the UAW strike, causing significant disruptions. Unifor’s approach of securing pattern agreements with automakers like GM and Ford is now being followed by GM, although the UAW had chosen a different path under its new leadership.
Information for this story was found via Unifor, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.