The United Auto Workers (UAW) and Dauch Corporation have reached a tentative agreement to end a 10-day strike at a key axle supplier for GM's truck lineup.
The details: The agreement at the Michigan facility meets the UAW's wage demands for nearly 1,000 workers and addresses pay cuts implemented in 2008 to help keep the plant open, Automotive World reported.
Top hourly pay will rise to $30 by 2030 from the current $22, a 36% increase.
The agreement includes improvements to vacation and holiday benefits, with no increases to healthcare premium costs.
Workers will receive a $2,000 ratification bonus and a $1,000 bonus after the first year.
Employees who worked at the plant before the 2008 concessions will receive an immediate $8-per-hour wage increase.
What they’re saying: “Tonight, after 18 years of sacrifice, these workers are finally winning back a big chunk of what was taken from them,” said UAW President Shawn Fain, following the signing of the agreement, per Automotive World.
Why it matters: The tentative agreement reduces the risk of disruption at a supplier that produces components for several high-volume GM truck models, helping dealers avoid supply-chain interruptions for some of the industry's most profitable pickups.
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Between the lines: The Dauch facility, formerly known as American Axle, produces axles and other components used in several GM vehicles.
GM vehicles supplied by the plant include the Chevrolet Colorado and GMC Canyon midsize pickups, as well as heavy-duty Chevrolet Silverado and GMC Sierra trucks.
The facility also manufactures components for Stellantis' Chrysler Pacifica minivan.
GM said earlier Wednesday that the strike had not affected production, according to The Detroit News.
Bottom line: While the strike did not disrupt production, the agreement highlights the importance of supplier labor stability and underscores why dealers should stay attuned to potential parts-related production disruptions that could affect future vehicle availability.
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