UAW's Shawn Fain Announces Breakthrough In Strike Talks With GM; Eyes On Ford And Stellantis Next

Shares of Detroit's "big three" automakers, General Motors Co GM, Ford Motor Co F, and Stellantis NV STLA were trading higher Friday after United Auto Workers (UAW) president Shawn Fain announced crucial updates.

What Happened: On Friday, Fain noted a significant change in talks with GM. Just as the automaker’s main profit-generating plant in Arlington, Texas was nearing a shutdown, GM consented to include their electric battery production within the UAW’s national master agreement.

Fain said the move stands in contrast to the automaker’s previous stance, which suggested that the change was unfeasible.

The UAW president said the development could redefine the future landscape of the industry and the union itself. Previously, there was a trend of reducing engine and transmission plants and substituting them with lower wage battery jobs. However, the UAW’s strategic approach appears to be proving effective, particularly in its dealings with GM.

Fain said he has the same expectations for Ford and Stellantis. Here are other key updates.

Wages: Originally, Ford proposed a 9% wage increase, but Fain said the figure is now 23%, an uptick he attributed to actions by union members during the strike.

GM and Stellantis are currently offering around a 20% increase.

Cost Of Living Allowance: Both Ford and Stellantis have agreed to revert to the 2007 cost of living formula, a step many thought wouldn’t happen.

GM is expected to follow suit soon.

Temporary Workers: There have been wage boosts for temporary workers, reaching $20 per hour at GM and Stellantis and $21 per hour at Ford.

While commitments about converting temporary roles to full-time roles have been made, Fain said more work remains on that front.

Wage Progression: Prior negotiations indicated it would take workers eight years to reach full pay. UAW successfully reduced it to three years at Ford, though GM and Stellantis remain at four years.

Profit Sharing: The union successfully countered the companies’ desires for concessions on profit sharing, even enhancing the offerings from Ford and holding ground against GM and Stellantis.

Job Security: After Ford agreed to core job security proposals, Stellantis also made favorable moves in that arena.

Fain said GM’s recent decisions seem to be laying a foundation for a “just transition.”

Skilled Trades And Tool Allowance: Initially, the big three were reluctant to give in. However, due to UAW’s efforts, Ford and Stellantis conceded tool allowances of $1.50 and $1.00 per hour, respectively. GM remains at zero.

Retirement Security: The UAW continues to advocate for retirement security for both pre and post-2007 hires. There is a push to regain pension rights and post-retirement healthcare benefits.

Fain also highlighted a new approach in negotiations, saying that all subcommittee issues are being addressed seriously. Subcommittees cover a range of concerns, from work rules to scheduling.

The ongoing strike, strategic planning, and unified action from UAW members seem to have influenced the negotiations.

Fain said the union’s consistent objective has been to obtain a historic contract reflecting the considerable profits of the “big three” and acknowledging the sacrifices its members have made to that end.

Read next: UAW Strike’s Impact On Ford, GM, Stellantis Prices: A $5,000 Surge Or Just $500? Analysts Weigh In

Photo: Shutterstock