The United Auto Workers union has achieved what it calls an unprecedented achievement in reaching tentative labor contracts with General Motors Co., Ford Motor Co. and Stellantis.
If union president Shawn Fain is to be believed, there will be more challenges for the Detroit Three automakers—and then some—in the future.
With this round of labor talks, the UAW has won, pending ratification votes, pay raises of 25% over the course of new four-and-a-half year contracts. The agreements came after the union conducted strikes at some operations of GM, Ford and Stellantis.
Since 1999, the UAW has negotiated four-year labor contracts. With the extra six months, the contracts will last until the end of April 2028. If a strike (or strikes) takes place after that, a walkout would occur on May 1, 2028—or May Day.
That date has symbolic importance for labor movements globally. May Day, according to Britannica, acknowledges “historic struggles and gains made by” workers and the labor movement.
Outside the U.S., May Day has major importance. Inside the U.S., not as much. Americans celebrate Labor Day in September. For decades, the U.S. labor movement has been back on its heels. In 2023, the UAW strike and other labor actions have reinvigorated labor.
What’s more, the UAW signaled that it wants to expand automotive labor talks beyond GM, Ford and Stellantis.
“When we return to the bargaining table” in 2028, “it won’t just be with the Big Three but with Big Five or Big Six,” Fain said on Oct. 28.
For decades, the union has attempted organize at U.S. factories (known as “transplants”) owned by foreign automaker such as Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and other automakers.
To date, the UAW has been unsuccessful. When new U.S. factories were announced, the union would, on occasion, lease billboard space near those plants. Officially, the union was welcoming them. Between the lines, it was a signal the automakers could look forward to organizing efforts. Occasionally, the union would conduct an election, such as at Nissan in Tennessee in 2001 or at a Volkswagen plant, also in Tennessee, in 2014 and 2019, only to see workers reject UAW representation.
To be sure, this round of talks with GM, Ford and Stellantis saw the biggest gains for the union in years.
Can the union build on those gains by expanding its organizing? That’s the challenge for the future.