The United Auto Workers (UAW) union has reached a tentative agreement with Dauch Corp.bringing an end to a 10-day strike at the company’s axle plant in Three Rivers, Michigan. This agreement not only resolves a critical labor dispute but also sets a precedent for worker compensation in the automotive supply chain.
The strike, which began on June 1, 2026involved nearly 1,000 workers who walked off the job to demand higher wages, more paid time off, and protections against rising healthcare costs. The tentative deal, which still needs to be ratified by union members, promises to address these key issues and more.
Key Terms of the Agreement
The proposed four-year contract includes several significant concessions. Top pay for union-represented employees will increase to $30 per hour by 2030up from the current rate of $22 per hour. Workers hired before the 2008 recession-era pay cuts will receive an immediate increase to $30 per hourbypassing the gradual wage progression.
In addition to wage increases, the agreement includes a $2,000 ratification bonus and a $1,000 bonus after the first year. Workers will also receive additional vacation time and holidays, including new time off for Martin Luther King Jr. Day and Veterans Dayas well as more time off for Christmas. Notably, there will be no increases in healthcare premium costs.
The Impact on GM Production
The Three Rivers facility produces axles and other components used in several General Motors (GM) truck models, as well as some parts for the Chrysler Pacifica minivan. The strike, which adopted the slogan “No axles, no trucks” highlighted the plant’s crucial role in the automaker’s supply chain. Although GM stated that the strike had not yet impacted production, a prolonged work stoppage could have led to broader manufacturing disruptions.
UAW leaders contended that workers had not fully recovered from concessions made in 2008which were necessary to keep the facility operating during the economic downturn. Those concessions resulted in wage reductions from as much as $29 per hour to $14.50 per hour. Union officials noted that current wages remain significantly below pre-recession levels, despite nearly two decades of service.
Looking Ahead
UAW Local 2093 members are set to vote on the tentative agreement in the coming days. Executives from Dauch praised both bargaining teams for successfully finding common ground. UAW President Shawn Fain described the agreement as a significant victory, stating that it shows automotive suppliers can address workers’ demands for better compensation and benefits.
“Tonight, after 18 years of sacrifice, these workers are finally winning back a big chunk of what was taken from them,” Fain said. He credited a grassroots organizing effort by Local 2093 as instrumental in achieving the tentative deal, saying the local had put on a “master class in how you win a contract fight.”
The tentative deal, Fain said, showed that “the auto industry, even parts suppliers, can afford our demands.” This agreement not only benefits the workers but also sets a positive example for labor negotiations in the automotive industry.
