UAW Reaches Tentative Agreement with Defense Contractor General Dynamics

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Published October 23, 2023

04:17 PM EDT

Air Force F-16C — Hyoung Chang / Contributor / Getty Images

Key Takeaways

United Auto Workers union members reached a tentative agreement with General Dynamics.
Union members will still need to vote to ratify the deal.
The agreement comes as the union enters its sixth week of striking against the Big Three automakers, Ford, General Motors, and Stellantis.

United Auto Workers (UAW) union members reached a tentative agreement with General Dynamics (GD), an aerospace and defense corporation that has contracts with the U.S. government, narrowly avoiding a strike.

The 1,100 UAW members working at General Dynamics in Ohio, Michigan, and Pennsylvania had voted to authorize a strike for their contract that expired on Sunday.

The tentative agreement includes "a four-year deal that provides a 14% wage increase, protects against inflation" through cost-of-living adjustments, as well as "reduces the time it takes to get to top pay, and beats back the company’s proposed healthcare concessions," the union reported.

Union members will later vote to ratify the tentative agreement, which prevented UAW members at General Dynamics from going on strike. The deal comes as the union enters its sixth week on strike against the Big Three automakers, Ford (F), General Motors (GM), and Stellantis (STLA).

General Dynamics shares were 0.5% lower in intraday trading on Monday as of 3:30 p.m. Eastern Time.

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United Auto Workers. "OVER 1,100 UAW MEMBERS AT GENERAL DYNAMICS IN MICHIGAN, OHIO, AND PENNSYLVANIA REACH TENTATIVE AGREEMENT AFTER STRIKE THREAT."
X (formerly Twitter). "@UAW, 6:54 p.m. Oct 10, 2023."

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