Is the UAW Strike at GM Almost Over?
More than a month ago, General Motors' (NYSE: GM) unionized workforce walked off the job, after their four-year contract expired and United Auto Workers officials found the company's contract offer underwhelming. As a result, production has ground to a halt across North America, leading to lost sales as dealer inventory of certain models has started to run low.
GM and the union finally reached a tentative contract agreement on Wednesday. But while the UAW's local leadership voted to send the contract to members for a ratification vote, GM workers aren't back on the job yet. If all goes well, production could restart in a little more than a week. But there's a meaningful chance that rank-and-file workers will reject the tentative agreement, in which case the strike could drag on well into November.
The GM-UAW tentative agreement incorporates significant compensation gains for the General's hourly workforce, according to a union summary. Most notably, by September 2023, all permanent employees who are currently with the company would be eligible for the top hourly rate of $32.32. Workers hired in the years ahead would start at a lower wage rate and progress to that level over time. For comparison, some permanent employees earn as little as $17 per hour today. Under the old GM contract, it would have taken eight years for new hires to reach the top of the wage scale.
Source Fool.com
