Quiver Quantitative - In a remarkable victory for the United Auto Workers (UAW), Detroit's big three automakers, Ford (F), General Motors (NYSE:GM), and Stellantis (STLA), have consented to compensate workers for the duration of the recent strikes. This arrangement, unprecedented in the history of UAW's negotiations with these car giants, ensures that the striking workers will receive slightly more than $100 per day, over and above the $500 weekly support from the UAW's strike fund. The strike, involving over 45,000 workers and lasting approximately six weeks, saw employees from various locations walking out at different intervals.
The agreements brokered with each of the automakers were pivotal in concluding what was the UAW's first simultaneous strike against all three companies. If ratified, the new contracts promise a 25% wage increase over the next four years, along with cost-of-living adjustments and enhanced benefits. As an incentive for the workers' resilience on the picket lines, the companies are prepared to shoulder the financial burden, amounting to tens of millions of dollars, as part of the resolution.
Throughout the targeted strike, some workers endured more than 40 days on the picket lines, whereas others continued their jobs uninterrupted. The UAW strategically managed the strike actions, drawing from a substantial $825 million fund dedicated to supporting striking workers with $500 per week. However, despite this provision, many workers, such as Nara Culberson from Ford's Michigan Assembly plant, faced financial strains, having to seek additional work with little success.
With the strike's end in sight, UAW members are now poised to receive a $5,000 ratification bonus pending approval of the new contracts. Voting has commenced at Ford, where the agreement was met with an overwhelming 82% approval at the Michigan Assembly plant and is expected to begin at Stellantis and GM shortly. The financial repercussions for the automakers are significant, with Ford reporting an operating profit loss of $1.3 billion, GM's bottom line predicted to suffer an $800 million hit, and Stellantis disclosing a profit reduction of under $800 million due to the strike.
This article was originally published on Quiver Quantitative