Your car, your job or your investment may touch one question: what does the UAW do? It bargains pay, benefits and job protections for autoworkers, and can strike when talks fail.
This explainer belongs to the wider topic of automotive business, where labor costs meet product plans.
| Item | Value |
|---|---|
| UAW autoworkers | 146,000 workers |
| 2023 strike length | Six weeks |
| Wage increase across the new contracts | 25% |
| Time to reach top wage | Three years (previously eight) |
| Ratification vote across all three automakers | 64% in favor |
| Contract expiry | Mid-2028 |
The figures come from CBS News and Click on Detroit reporting from late 2023. Figures can change, so check the source before you rely on them.
What the UAW does for autoworkers
The UAW is the United Auto Workers, a labor union that represents workers at carmakers and in other industries. Its main job is collective bargaining: negotiating a contract that sets pay, benefits and job protections for the members it covers. Click on Detroit put the union’s autoworker membership at 146,000 in November 2023.
A UAW contract can cover several areas:
- Pay: hourly raises and how quickly new hires reach the top rate.
- Cost-of-living adjustments (COLA), which tie pay to changes in consumer prices.
- Retirement: employer retirement-plan contributions and bonuses for retirees.
- Job security: for example, the right to strike over plant closures.
The union’s leverage is the strike. If talks stall, members can walk off the job, which is what happened at all three Detroit automakers in September 2023.
How contract talks with the Big Three work
Detroit’s Big Three are Ford, General Motors and Stellantis, the parent company of Chrysler. Michigan Public explained that the UAW usually targets a single company for negotiations and a possible strike, then expects the other two to reach similar deals.
In 2023 that pattern broke. Shawn Fain was elected to lead the union earlier that year as it worked to shake off a deeply damaging corruption scandal, and he insisted on talking to all three companies at once, according to Michigan Public.
Fain also changed how the talks looked from the outside. Instead of keeping negotiations secret, he offered updates on what was on the table in repeated Facebook Live sessions aimed at union members, and he framed the talks as a war with the companies as the enemy, according to Michigan Public. The outlet described the negotiations as contentious and unusually public, and said Fain saw a rare opportunity for significant gains.
The strike began in September 2023, when workers at three assembly plants, one per company, walked off the job, per the same report. Fleet Maintenance called these “standup strikes,” meaning the union widened the walkout in steps instead of stopping every plant at once.
The deals came one at a time. NPR reported that the union clinched a deal with Ford on Wednesday and sealed an agreement with Stellantis on Saturday. When GM was the last holdout, the UAW ordered a walkout at the Spring Hill plant in Tennessee, which NPR described as GM’s largest facility in North America.
That plant also feeds engines to other plants, which NPR said set GM up for potentially very painful ripple effects if the shutdown had been prolonged. Fleet Maintenance noted that the union leveraged the Ford and Stellantis agreements to reach a favorable deal for members at GM.
By October 30, 2023, NPR reported that all three of the Detroit automakers had clinched an agreement with the union. Those deals still needed a vote of the members.
The companies framed the outcome differently from the union. GM chair and CEO Mary Barra said the tentative agreement reflects the contributions of the team while enabling GM to continue to invest in its future and provide good jobs in the U.S., as NPR reported. That split, a union calling the result historic and a company stressing future investment, runs through most coverage of the 2023 talks.
What the 2023 contracts changed
CBS News listed these wage terms in its October 30, 2023 report:
- Workers at all three automakers get a 25% increase in hourly pay across the contract.
- Ford and Stellantis employees see an immediate 11% increase.
- Full-time employees reach top pay after three years, down from eight under the previous contracts.
- The two-tier wage system adopted in 2007 was abolished.
WDET reported more money terms in its November 10, 2023 story:
- A $5,000 lump-sum ratification bonus, which for the first time includes temporary workers.
- Employer 401(k) contributions rising to 10%.
- Annual bonuses for existing retirees.
- The return of cost-of-living adjustments.
Not everything the union asked for arrived. Michigan Public reported that Fain set targets of raises north of 40% over 4 years, a return of pensions and retiree health care, and a 32-hour workweek. WDET reported that negotiators were unable to secure those pensions, and Fain pointed to 2028 for that issue.
The Stellantis deal also included the reopening of an idled plant in Belvidere, Illinois, which NPR called a major union priority.
How did members vote on the deals?
A tentative agreement is not final until members ratify it. NPR noted that workers have the ability to send their representatives back to the bargaining table instead.
Michigan Public reported on November 16, 2023 that about 55% of GM votes were in favor, with 70% at Stellantis and 68% of Ford votes tallied so far. As of the UAW’s November 20, 2023 announcement, Click on Detroit reported that 64% of members across all three carmakers voted to ratify.
A yes was never guaranteed. NPR reported that 73% of Mack Trucks members rejected a tentative contract in October 2023.
The strikes involved over 40,000 of the UAW’s 146,000 autoworkers and were suspended after the tentative agreements, according to Click on Detroit.
What UAW deals mean for automakers and car buyers
Labor contracts are a cost for the companies. Ford CEO Jim Farley said the reality is that the labor agreement added significant cost, and that Ford must work hard on productivity and efficiency, as Click on Detroit reported.
The strike was costly too. Stellantis chief financial officer Natalie Knight said the combined shipment impact was around 50,000 units in September and October, with a net revenue impact of three billion euros, as WDET reported.
A companion guide shows how to read an automaker earnings report, which is where costs like these reach investors. A separate explainer on how are used car prices determined covers the resale side of the market.
What the UAW says it wants next
The new contracts expire in mid-2028, according to Click on Detroit. The same report says Fain has expressed interest in adding workers at Toyota, which it calls the world’s top-selling automaker, and workers in other industries.
Frequently asked questions
What does UAW stand for?
Show answer
UAW stands for United Auto Workers, the union that negotiated the 2023 contracts with Ford, General Motors and Stellantis.
Did every UAW autoworker go on strike in 2023?
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No. Click on Detroit reported that the strikes involved over 40,000 of the UAW’s 146,000 autoworkers.
Did the 2023 contracts bring back traditional pensions?
Show answer
No. As of WDET’s November 10, 2023 report, negotiators had been unable to secure those pensions, though the deals raised employer 401(k) contributions to 10%.
Do members have to accept a tentative deal?
Show answer
No. Members vote, and they can send their representatives back to the bargaining table, as NPR noted in its October 30, 2023 report.
