The United Auto Workers (UAW)’s recent record-breaking contract with General Motors (GM) could have a ripple effect on wages across other industries, labor experts say.
The contract, which was ratified by UAW members on October 25, 2023, includes a number of significant gains for workers, including:
A 10% wage increase over the next four years
A $11,000 signing bonus
Increased profit-sharing payments
Improved benefits, including healthcare and retirement
The contract is seen as a major victory for the UAW and for organized labor as a whole. It comes at a time when workers are increasingly demanding better pay and benefits.
Labor experts say that the UAW’s contract could set a new standard for wages and benefits in other industries. This is because many companies look at the UAW’s contracts as a benchmark when setting their own pay and benefits packages.
“The UAW’s contract is a big win for workers,” said David Madland, director of the Center for American Progress’s American Worker Project. “It shows that unions can still negotiate strong contracts, even in the face of corporate opposition.”
Madland said that the UAW’s contract could have a positive impact on wages and benefits in other industries.
“Other unions will be looking at the UAW’s contract and saying, ‘We can do that too,'” Madland said.
The UAW’s contract is also a sign that workers are becoming more assertive in their demands. In recent years, there has been a wave of strikes and other worker protests across the country. Workers are demanding better pay, benefits, and working conditions.
“The UAW’s contract is a show of force by workers,” said Richard Freeman, a labor economist at Harvard University. “It shows that workers are willing to stand up for themselves and demand what they deserve.”
It remains to be seen whether the UAW’s contract will lead to higher wages and benefits for workers in other industries. However, it is a clear sign that the labor movement is gaining momentum and that workers are becoming more assertive in their demands.