UAW Members Reach Agreement With Detroit’s Big Three – A 4½-Year Contract!

Despite months of negotiating, the United Auto Workers (UAW) and Detroit’s Big Three automakers—Ford, General Motors, and Fiat-Chrysler—finally have an agreement. UAW members voted to ratify a 4½ year contract on Wednesday, October 28th, 2020, that will bring increased wages and benefits to unionized employees. Under the finalized contract, UAW members will receive a 3% raise in the first year followed by three 2% raises throughout the following years. Additionally, workers will get two lump-sum payments of 4% each at the end of the second and fourth years. This is significant as it serves as a cost of living adjustment, especially during the COVID-19 economic downturn. The new agreement also provides UAW members with an increased share of profits from the automakers. They will receive annual profit-sharing payments of $9,000 in the first year, $9,500 in the second year, and $9,750 in the third year. In the fourth year, bonus payments will be distributed in either cash of a lump-sum payment, which will depend on how well the automakers have done. These payments are estimated to be around $10,500. The new contract also provides pension pay increases and $2,000 signing bonuses for every eligible UAW worker. Additionally, UAW initial part-time workers are now eligible for full-time status, equalizing pay for current part-time and full-time workers and ridding the possibility of their exploitation. Overall, the agreement that the UAW reached with Detroit’s Big Three automakers is beneficial for the union members. It increases wages and benefits, increases workers’ share of the profits, provides pay increases for retired workers, and provides more job security and better protection against exploitation. It is estimated that the agreement will increase the wages and benefits UAW members by 34%. This tentative agreement is an important victory for UAW members and serves as evidence that collective bargaining can lead to a stronger future for all involved.