US Auto Workers Union "Halts Strike Expansion"... Progress in Negotiations on Battery Plants and Other Issues

GM to Include Electric Vehicle Battery Plant Workers in UAW Agreement

The United Auto Workers (UAW) union, which launched an unprecedented simultaneous strike in the United States, announced on the 6th (local time) that it would not expand the strike due to progress in negotiations.

[Image source=AP Yonhap News]

According to major foreign media, this announcement came immediately after General Motors (GM) agreed to include electric vehicle battery plant workers under the UAW contract. UAW President Shawn Fain stated, "We have made a significant breakthrough that not only dramatically changes the negotiations but also transforms the future of our union and the industry." The UAW began simultaneous strikes last month on the 15th at three plants of the 'Big Three' automakers: Ford, GM, and Stellantis. Since then, the strike has expanded to involve about 25,000 workers.

Until now, the union and management had failed to narrow their differences on key issues despite relay negotiations. The UAW is demanding at least a 40% wage increase over the next four years and job security for electric vehicle production workers. In particular, the UAW insists that workers at electric vehicle battery plants must also be included under the union contract. However, management has opposed this, citing that most of these plants are joint ventures with foreign companies.

In GM's case, it has established the joint venture Ultium Cells with LG Energy Solution and is operating or constructing three battery plants in the United States. Bloomberg News reported that while there are still many negotiation steps remaining on how GM will specifically include battery plant workers under the UAW contract, this move is expected to pressure Ford and Stellantis to adopt the same stance.

The UAW also announced progress in negotiations with the other two companies besides GM. Ford proposed raising its initial 9% wage increase offer to up to 23% over the next four years. Stellantis and GM offered 20%. President Fain emphasized that the strike is having an effect but warned that if negotiations stall, the strike could be expanded again in the future.