UAW strike: Just days after Spring Hill walks out, GM and union reach tentative agreement

Just two days after the United Auto Workers called on employees at General Motor's largest assembly facility in Spring Hill to walk out, the union and auto manufacturers reached an agreement Monday.

After much speculation, UAW President Shawn Fain confirmed the deal Monday afternoon, suspending the stand-up strike in effect for the big three auto makers.

GM was the last to reach an agreement, following previous agreements reached by Ford and Stellantis over the weekend.

About 3,200 employees at the Tennessee assembly plant walked out suddenly on Saturday, GM spokesperson Allison May said.

The union and GM engaged in marathon sessions attempting to come to an agreement but were at a standstill ultimately prompting the Spring Hill walkout, an action announced Saturday on Facebook by Spring Hill UAW Local 1853.

Though the strike is not over and ratification of the proposed agreement is pending.

The strike will remain until union members vote on whether to accept the contract, Spring Hill Local UAW 1852 President John Rutherford said Monday.

"They said it was at about 3:45 a.m. when they reached the agreement last night, but we haven't gotten the official word from our peers up north," Rutherford said. "We've been told to continue what we are doing. We're still on strike as of now until we hear something different."

Strike ongoing, next steps

Rutherford added that he and his workers were notified to walk out by 5 p.m. Saturday, which at the time included about 60-70 people on-duty at the plant.

Analysis:A prolonged UAW strike at General Motors' Spring Hill plant would have hurt Tennessee

"We got them out, set up the gates and had people showing up by 6 p.m." Rutherford said. "Now we've got all our spots covered."

As of Monday, Spring Hill UAW workers gathered at the union hall, waiting for the next announcement — if the strike will continue this week, or if a final agreement can be reached and voted upon.

The timeline remains uncertain.

The UAW national councils will vote to send any proposed agreements to their membership.

From there, UAW will hold a public review of the tentative agreements, then regional meetings to walk through them with local leaders. Once leadership on the local level meets with their members, they'll hold a ratification vote.

"Historically, when there is a tentative agreement you don't go back to work until you vote on it. But this time they're doing things a little different, with Ford going back to work, and they still have to vote on it," Rutherford said. "If they vote it down, they'll have to walk back out. So right now, we are just waiting on the word for what we have to do."

Rutherford remembered one strike that was less than 24 hours.

"The first strike I was a part of years ago was not even 24 hours," Rutherford said. "But then sometimes it can last months. You just don't know."

Tim Smith, UAW Region 8 director, said he knew if Spring Hill walked out, that would be the tipping point for GM.

"I feel like it's a great agreement for our membership, but again, they'll make that decision. But it is historical," he said.

UAW strike:What Spring Hill GM workers say they're fighting for. 'We deserve to have a life'

GM disappointed in strike after historic offer

GM previously touted their contract offer, which included a 23% increase in general wages and a 25% compounded wage increase over the life of the proposed contract.

However, low pay for temporary workers and the time it takes to reach maximum pay remained a concern among many workers as contract negotiations lagged. 

The details of the tentative agreement are still unknown. GM declined to comment until the union makes an official announcement, though released a statement on Saturday expressing its disappointment in the unexpected strike.

The UAW "Stand Up Strike" throughout the country including "The Big Three" - GM, Ford and Stellantis - reached its sixth week on the picket lines Friday.

Fain started the long-term nationwide strike with a routine address each Friday on Facebook, updating union members about negotiations and calling on more facilities to walk out.

Then Fain, a couple of weeks ago, switched the UAW strategy by unexpectedly calling for a Kentucky plant to go on strike, proclaiming a "new phase of this fight" and warning of more unexpected walk outs.

Spring Hill was one of those on Saturday.

Fain has not commented about the most recent Spring Hill walk-out.

UAW makes tentative agreements with Ford, Stellantis

Union leadership reached a tentative deal with Ford on Wednesday and Stellantis over the weekend.

The tentative agreement with Ford includes a 25% wage increase with starting wages increasing about 68%. Temporary workers get 150% raise through the 2023 agreement, and the agreement includes a reinstatement of cost-of-living adjustments.

The tentative agreement with Stellantis is similar to Ford with 25% wage increases and a 168% raise increase for temporary workers. Starting wages, under the agreement, will increase 67% with top wage increasing about 33%.

UAW estimates Stellantis' offer increased 103% since workers went on strike.

Last week, many Spring Hill UAW workers visited picketers at the Mack Truck plant in Louisville, Kentucky, bringing food, water and solidarity to their fellow union members.

"They loved having us come up there, and even though they are Ford they are still UAW members," Rutherford said. "Their president, Todd Dunne, he toured us around and welcomed us. It was really exciting."

Finance experts weigh in

Vanderbilt finance professor Josh White weighed in on the rapid impact of the Spring Hill strike.

"I think it speaks volumes about its significance to GM. The quick agreement after the Spring Hill walkout shows that UAW leadership recognizes its importance and leverage without causing irreversible financial harm to GM," he said. "Given that Spring Hill manufactures some of GM's top-selling vehicles, it was a strategic final negotiation tactic."

Daniel Smith, director of Middle Tennessee State University's Political Economy Research Institute said the new short-strike tactic is "puzzling" because it came after UAW made progress in negotiations. GM matched terms with Ford and Stellantis and allowed workers at the new Ultium Cells plant in Spring Hill to unionize. 

"Given that the UAW and GM appear to be close to agreeing on terms, it would be surprising if the Spring Hill strike were extended," Smith said. "If the strike stays confined to a week, there should be little economic impact on the local community."

The UAW's wins, Smith said, could bode well for unions in right-to-work Tennessee and ongoing union successes may cut into benefits for non-union workers. 

"Long-term, however, increased unionization in Tennessee can be expected to reduce employment and wages for non-unionized workers. 

"Reducing the ability of automakers to operate non-unionized plants through UAW contracts like this might also reduce the incentive for automakers to open new factories in Tennessee. The extent of this damage, however, will be limited by Tennessee’s constitutional protections for right-to-work, which allows employees in Tennessee to keep their hard-earned money if they decide not to join a union."

More:Spring Hill mayor discusses how possible UAW strike could hurt economy, workers

The 11 million square-foot Spring Hill GM plant on 2,100 acres, which opened in 1990, builds SUV models, including Cadillac models XT5, XT6, and the all-electric LYRIQ, powered by Ultium Cells batteries, and the GMC Acadia.

Jay Powell, Evan Mealins and Sandy Mazza contributed to this story.

Kirsten Fiscus is a breaking news reporter for The Tennessean. Contact her at kfiscus@tennessean.com or follow her on X, formerly known as Twitter, @KDFiscus.