Assembly Magazine logo
search
Ask ASSEMBLY AI
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Assembly Magazine logo
  • TRENDS
    • Ask ASSEMBLY AI
    • Trends
    • News
    • New Products
  • INDUSTRIES
    • Aerospace
    • Appliance
    • DFMA Assembly
    • Medical Devices
    • Green Manufacturing
    • Lean Manufacturing
    • Machinery Assembly
    • Electronics Assembly
    • Automotive
  • TECHNOLOGIES
    • Adhesives & Dispensing
    • Assembly Presses
    • Automated Assembly Systems
    • Manufacturing Management
    • Manufacturing Software
    • Motion Control
    • Screwdriving & Riveting
    • Robotics
    • Test & Inspection
    • Plastics & Metal Welding
    • Wire Processing
    • Workstations
  • AUTONOMOUS & ELECTRIC MOBILITY
    • AEM Magazine Archives
    • Autonomy
    • Electrification
    • Mobility Services
    • Assembly & Testing
    • AV/EM News
  • MEDIA
    • Ask ASSEMBLY AI
    • Podcasts
    • Assembly News Now
    • Assembly TV
    • Webinars
    • eBooks
  • EVENTS
    • Calendar
    • The ASSEMBLY Show
  • MORE
    • Exclusives >
      • Plant of the Year
      • Capital Spending
    • Buyers Guide >
      • Supplier Insights
    • Classifieds
    • Featured Products
    • Newsletters
    • Store
    • White Papers
    • Columns
    • Sponsor Insights
  • INFOCENTER
    • Assembly & Test Solutions
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Advertise
    • Contact Us
    • Sign Up
Assembly Breaking News Automotive Assembly

UAW Members Approve Contract and End Strike Against GM

October 29, 2019

DETROIT—The longest nationwide strike against General Motors in half a century ended on Friday after a solid majority of the company’s union members delivered their support for the four-year contract hammered out by their leaders.
The United Auto Workers (UAW) union emerged with substantial wage increases and succeeded in ending a two-tier wage structure that had been a particular irritant in its ranks. It also won commitments to new GM investments in United States factories, while accepting the permanent shutdown of three plants already idled.
The UAW. said 57 percent of the nearly 41,000 members voting had backed the contract proposal. Now it will turn its attention to the other big Detroit automakers, Ford Motor and Fiat Chrysler. The union usually seeks to reach similar terms in a process known as pattern bargaining.
Patrick Anderson, the chief executive of Anderson Economic Group, a research and consulting firm, says that GM lost an estimated $1.75 billion as a result of the strike. But the walkout inflicted a wider economic toll, particularly in the Upper Midwest and other areas dependent on the auto industry, causing layoffs at GM suppliers like Lear Corp.
In total, striking GM employees and workers at the suppliers lost an estimated $988 million in wages, according to Anderson. For GM workers, the contract will yield wage increases of 3 percent in the second and fourth years and 4 percent lump sum payments in the first and third years, similar to what the union obtained in 2015.
Even larger gains are in store for those in a category called “in progression,” the lower scale of a two-tier wage system negotiated in 2007 when the Detroit automakers were financially reeling. Workers hired after that date, about a third of the overall work force, started at about half the pay of veteran employees and had no prospect of reaching the top wage, currently $31 an hour. Over the course of the new contract, the disparity will be phased out, and those with four years’ experience will rise along with more senior workers to the new top level of $32 an hour.
In addition to pay increases, GM workers will get bonuses of $11,000 for ratifying the contract. They will continue to pay 3 percent of their cost of health care, well below the percentage that GM’s salaried workers contribute.
There were also rewards for temporary workers, about 7 percent of GM’s union work force, who will have a path to permanent employment after three years. About 900 of them will become full employees in January, the union said, and 2,000 more by 2021. The U.A.W. now has just under 400,000 members, down from 1.5 million in 1979, and 540,000 in 2006.
As part of the new contract, GM pledged to invest $7.7 billion in its United States plants, and another $1.3 billion in ventures with partners, providing a measure of job security. GM will put $3 billion toward overhauling the Detroit-Hamtramck plant, which had been scheduled to close in January. Three-quarters of the 700 workers there voted in favor of the contract.
At the same time, the agreement allows G.M. to close three idled factories permanently, including one in Lordstown, OH, eliminating excess manufacturing capacity at a time when auto sales are slowing. It also puts the company in a more stable position if the economy goes into a recession.
But the agreement, estimated to increase labor costs by $100 million per year, will deepen GM’s disadvantage compared with some competitors. Before the strike, labor — including wages, benefits and other expenses—cost GM about $63 an hour, according to the Center for Automotive Research. The cost for foreign automakers that operate nonunion plants in the South is about $50 an hour. Many of their plants pay less than $20 an hour.

Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM →

KEYWORDS: General Motors strike United Auto Workers (UAW)

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Made in the U.S.A.

    Consumer Products Manufacturing: Made in the USA

    Supply chain lessons learned during the coronavirus...
    Automated Assembly Systems
    By: Austin Weber
  • Best Practices for Press-Fit Assembly

    Best Practices for Press-Fit Assembly

    In manufacturing, ironclad formulas for success are hard...
    Assembly Presses
    By: Jim Camillo
  • aem0523leader-tesla1.jpg

    Tesla Rethinks the Assembly Line

    Engineers at Tesla Inc. have developed a new process that...
    Assembly and Testing
    By: Austin Weber
Manage My Account
  • eMagazine Subscription
  • Assembly Newsletters
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the ASSEMBLY audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of ASSEMBLY or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • ultrasonic welding
    Sponsored bySonobond Ultrasonics

    Engineering Efficiency in High-Performance Assembly: How Ultrasonic Welding Enhances Throughput, Reliability and Quality

  • UV curing system
    Sponsored byDymax

    Why UV Intensity Alone Doesn’t Define Curing Performance

  • wooden pallets
    Sponsored byLEAN Manufacturing Products

    Eliminating Waste on the Shop Floor: Applying Lean Principles to Improve Manufacturing Efficiency

Popular Stories

Ferrari

Ferrari Unveils Four-Door EV

ASSEMBLY News Now, episode-30: Volvo Redesigns EV Manufacturing

Volvo Redesigns EV Manufacturing

automated consumer goods assembly system

Best Practices for Cycle Time Optimization

Watch the latest episode of ANN now!

Events

July 24, 2025

From Shop Floor to CFO: How Manufacturers Are Closing the Loop Between Operations and Finance

On Demand Learn how manufacturers are bridging the gap between the shop floor and ERP systems to gain real-time visibility, streamline operations, and kick-start digital transformation—without waiting years.

Sponsored by:

PicoStratusGreen
July 30, 2025

Buffer Analysis and Design Fundamentals for Manufacturing Excellence

On Demand In this presentation, Dr. Herman Tang shares practical insights from his industry experience and research on buffer management in manufacturing operations.

View All Submit An Event

Poll

Difficult Assembly Processes

Which assembly process gives you the most difficulty?
View Results Poll Archive

Products

Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs

Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs

See More Products
Register for webinar - Modernizing Automotive Assembly: Why Upgrading Legacy MES is a Business Imperative

Related Articles

  • UAW Members End Strike at American Axle Plant

    UAW Members End Strike at American Axle Plant

    See More
  • UAW.jpg

    The UAW Union Strike Against Ford, Stellantis, and General Motors Continues

    See More
  • asb0922auto2.jpg

    At Democratic Convention, UAW Head Threatens Strike Against Stellantis

    See More

Related Products

See More Products
  • Kaizen Assembly: Designing, Constructing, and Managing a Lean Assembly Line

  • strong.jpg

    Strong Supply Chains Through Resilient Operations: Five Principles for Leaders to Win in a Volatile World

  • Designing with Plastics

See More Products

Related Directories

  • EndFlex

×

Never miss the latest news and trends driving the manufacturing industry

Stay in the know on the latest assembly trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Manufacturing Division
    • Store
    • Want More?
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing