The UAW successfully concluded its strike of the big three U.S. automakers, coming to tentative agreements with all three in quick succession and leading to big wage increases for union workers.
The strike lasted more than 40 days, and in the end the UAW walked away apparent victors. Throughout the contentious negotiations, the union maintained that with automakers raking in record profits, it was time for workers to start reaping the benefits. The UAW had been forced into huge concessions fifteen years ago when the entire U.S. auto industry was on the brink of complete failure before and the U.S. government stepped in to bail it out.
The union leadership touted its success in avoiding over 5,000 layoffs while securing record wage increases. Over the term of the contracts, wages will increase for workers by more than they had over the preceding 22 years. Over the five-year contract, average wages will increase by 25 percent pushing the top wage to $42 per hour or $87,000 annually before overtime. Just one overtime shift per week will push annual earnings for the average worker to $113,000.
When the union was forced to make concessions to save jobs fifteen years ago, the companies instituted wage tiering which meant that newly-hired workers would never earn as much as current workers. They would start out lower and finish lower even when they reached the top pay step.
After tiering was instituted at the major private employers nationally, the idea started making its way into contracts with smaller unions. The strategy utilized by employers was to offer above-average wage increases to current employees if those employees would agree to lower wages across the board for future hires or “the unborn” as they were called in negotiations.
The logic for workers was that they had no reason to worry about folks who did not even work for the employer yet. But that short-sighted vision eventually caught up with both the employers and the workers as new employees began to outnumber current employees and resentments began to build among the workforce.
Suddenly new employees began accusing more senior employees of selling them out and the employers were forced to explain why one worker would be earning as much as 25 percent less than a fellow worker for doing the same jobs. The tiering started becoming untenable once labor demand began outpacing supply and workers began to gain more leverage.
The result in the UAW negotiations therefore seemed inevitable.
Shawn Fain, the leader of the UAW who implemented the strike strategy has said that he has a greater vision than simply improving the lives of UAW workers at the Big Three. After the tentative agreements were reached, Fain said that he hoped that UAW contracts would have far-reaching effects for workers throughout the country who have seen their wages stagnate for most of the century.
He called on other unions throughout the country to align their contract expirations with the UAW so that rather than walking out alone if negotiations fail, “We strike together.” Many labor experts believe that the success of the UAW strike will propel workers nationwide to demand better wages and working conditions and that they will feel empowered by the results of the UAW’s success.
The Law Office of Eric R. Brown 
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