McElroy added the car companies have already announced they’re going to cut back on future investments to help offset the costs of the contracts.
The deal on the table would improve pay, benefits, and job security for UAW-represented employees at BCBSM and Blue Care Network of Michigan.
Those automakers include Volkswagen, Mercedes, BMW, Toyota, Honda, Nissan, Hyundai, Subaru, Mazada, as well as electric vehicle makers like Tesla, Rivian, Lucid.
On Wednesday, the two bargaining teams will formalize the tentative contract. If ratified, it would end the strike that began on Sept. 13.
The outcome was closer than expected after the UAW’s celebrations of victories last month on many key demands that led to six weeks of targeted walkouts against GM, Ford and Stellantis, the maker of Jeep, Dodge and Ram vehicles.
A majority of GM's large assembly plants voted down the deal. Despite the president selling the agreement as an historic one, many have gone against it. Here's why:
There are 46,000 workers employed by GM that are voting on their own agreement. As of Wednesday afternoon, 17,135 GM union members voted yes, while 14,657 voted no.
The hard part is over and the UAW leadership believe they have secured the best possible contract. Workers must still ratify the deals before they can go into effect.
"It’s not the flip of a switch," said John Walsh, the president of Michigan Manufacturer’s Association. "It takes time to wind down, it takes time to wind back up."
Local union groups are voting on whether to ratify the agreements secured between the UAW and the Big three. The UAW president has called the deal historic.
“General Motors wants to send a message that they value their employees, whether they are salaried or union," said Alan Amici.
The union says that the Stellantis contract includes gains valued at more than four times what they got in 2019.
The strike hasn't come without losses. By one estimate, the industry suffered $10.4 billion in costs.
Big Three automakers are inching closer to having new contract agreements with the UAW implemented. Ford, GM, and Stellantis are currently going through the ratification process.
The end of the UAW's historic strike could be near now that all Big Three automakers have tentative deals with the union. General Motors reached a tentative agreement with the UAW on Monday, following Ford and Stellantis.
Tentative agreements have been reached with all of the Big Three American automakers. UAW members are returning to work, as the strike has been suspended.
General Motors and the UAW reached a tentative agreement Monday. GM was the last of the Big Three to reach a tentative deal with the union after weeks of negotiating and striking.
UAW leadership detailed Ford's tentative deal on Sunday before it heads to union members for a vote. Highlights include wage hikes and plant investments.
Notably, the deal with Ford includes plans to work in the automaker's incoming electric vehicle plants coming to Marshall, Michigan and Tennessee.
Jeep maker Stellantis reached a tentative contract agreement with the United Auto Workers union on Saturday as it escalated strikes against General Motors by adding a plant in Tennessee.