The 40-day GM strike has just come to an end, and the United Auto Workers (UAW) recently announced that it will next negotiate with Ford, followed by Fiat Chrysler (FCA). UAW approved a new four-year labor contract with GM on Friday, foreign media reported, agreeing to invest an additional $7.7 billion in the U.S. and pledging to create 5,400 jobs.
The new deal ends a 40-day strike by GM, which lost nearly $2 billion.
According to the agreement, UAW won several financial gains for union members, including an annual bonus or raise, and a $11,000 approval bonus, but agreed not to block GM’s plan to close four U.S. plants.
Meanwhile, UAW announced Friday that it will negotiate with Ford After reaching a deal with GM, and that the union will use gm’s agreement as a template for other automakers, including Ford and Fiat Chrysler.
Earlier, Ford executives had said they would cut the number of hours needed to produce electric cars by 30 per cent in the future, and UAW expressed concern about the impact its union members could have on them.
In the template of the deal with GM, GM has done little to reduce its share of the UAW health plan, which could cost Ford more because it employs about 55,000 UAW members in the United States.