The United Automobile Workers (UAW) have recently approved a new 4½-year contract with the Detroit automakers—Ford, Chrysler, and General Motors—which includes both economic and job security aspects. The new contract is an important milestone for the union, as it helps to revitalize and stabilize a beleaguered auto industry which has been characterized by years of cost-cutting and job losses.
Under the new contract, the automakers will be required to invest billions of dollars into past and present UAW members’ retirement benefits. This includes funding for pension plans and medical benefits. In addition, the automakers have agreed to create thousands of new jobs over the course of the contract. The new contract also increases pay for veteran workers, establishes supplemental unemployment benefits for laid-off or furloughed UAW members, and provides additional job security protections.
The UAW is hopeful that the new contract will help to rebuild the auto industry to the point where it once again sets the standards for innovation, quality, and profitability. Ford, Chrysler, and GM have all committed to using the new contract to invest in their respective communities, create jobs, and provide new opportunities for UAW members. As the auto industry continues to claw its way back to viability, it is clear that the new contract will be a crucial component of ensuring its future success.