The opening of 2023 contract negotiations in the auto industry is still months away but the outcome of the United Auto Workers strike at John Deere, with its hefty raise, restoration of cost-of-living adjustments and the militancy of the union, is already casting a long shadow.
The John Deere pact is very likely to influence the 2023 negotiations, according to Harley Shaiken, a professor of labor studies at the University of California-Berkeley.
“I do think people will be looking at it,” said one union official, who asked for anonymity because he was not authorized to discuss contract negotiations.
Comments by UAW members on social media are also pointing to the 10% pay increase in the first year, coupled with the two 5% raises built into the third and fifth years of the Deere contract, as the starting point for union demands for the future negotiations with General Motors, Ford and Stellantis.
“Hopefully the big three get a good contract like that one,” observed one social media post.
When the negotiations at Deere started last summer, a 10% raise seemed unattainable. The GM workers got a 3% general wage increase after a 40-day strike at GM in 2019, and the hike was considered a good outcome since the wages and benefits of union members and blue-collar workers had eroded during previous two decades. Concessions of various kinds had become the norm.
Workers expect more now
However, times are changing, and workers have grown more militant in the wake of the COVID-19 pandemic.
Deere workers voted down one of the company’s contract offers setting the stage for the walkout in early October — then voted down a second offer even as they were out picket lines and collecting strike pay.
The strike at Deere was the second walkout by UAW members after the rejection of a tentative contracts negotiated by the UAW’s top executive board, underscoring a rising sense of militancy among union’s membership. In June, workers at Volvo Truck voted down a tentative agreement negotiated by UAW President Ray Curry three separate times amid a 30-day strike.
Automakers have not offered any comment on the settlement at Deere but contracts in agricultural implements and construction equipment beginning in the 1990s helped set the stage for concessions by labor in the auto industry. Now the pay increases negotiated at Deere could give UAW organizing drivers at non-union auto plants a major lift.
The Deere strike also underscored another issue certain to influence contract talks in the auto industry. After decades where there were too many workers, carmakers and their suppliers are facing the prospect of a potential labor shortages for the first time in years.
In recent months, GM plants in Missouri, Indiana and Michigan as well as the Stellantis/Jeep plant Toledo, Ohio have reported problems finding temporary employees. UAW officials have reported there is increasing competition for employees with Amazon’s warehousing operations, which offers pay comparable to temporary workers employed by Detroit automakers.
Strike set a tone for labor
After the ratification vote, the UAW noted the Deere strike seemed to capture the mood of a nation in search of fairness in wages and benefits for workers.
The union noted the agreement, includes an $8,500 signing bonus; 20% increase in wages during the lifetime of the contract with 10% this year; return of Cost of Living Adjustments; three 3% lump sum payments; enhanced options for retirement and enhanced performance benefits. Healthcare remains the same for the life of the agreement.
“Our members courageous willingness to strike in order to attain a better standard of living and a more secure retirement resulted in a groundbreaking contract and sets a new standard for workers not only within the UAW but throughout the country,” said Chuck Browning, vice president of the UAW and director of the UAW Agricultural Implement department, who led the negotiations.
What they’re not telling you is that the hidden language and side letters include tradeoff of jobs, manpower reductions and unrealistic output demands are in the contract in order for all the good sounding highlights put out for this contract to be ratified by rank and file!!!
The auto industry knows now by switching to Electric they can build a vehicle with less moving parts faster and cheaper with less people compared to your ICE vehicle. Autos will be raking in record profits for years when the parts issues are resolved. The UAW membership will be reduced by 20% at minimum. We “The Union”, will be looking for MAJOR gains this next contract. Also MAJOR raises for retirees. Anything less and we have been swindled by our leadership. Start saving a few months of living expenses now. You don’t want to be the weak link in the chain this go around.
Why is it that Gm has beat put toyota since the 1930’s with the exception in 2021 that Toyota a non union environment can pay there associates at a two year top put at 28.95 hr. I’m currently at GM making 18.90 hr?