Did The Labor Contracts Between The UAW And The Big Three Automakers Work?

Abstract

In the Fall 2007, there were landmark labor contracts agreed upon between the United Autoworkers (UAW) and the Big Three Automakers—General Motors, Ford Motor Company, and Chrysler LLC. The impetus for these truly historic labor agreements was to afford the automakers to remain competitive in the global market while labor was to be protected. Since the passage of these labor contracts, auto sales have continually declined to record lows due to the recession in the United States. This paper will trace the major contractual provisions of these labor agreements and also analyze how effective they were in accomplishing the stated goals for both the UAW and the Big Three automakers. Additionally, the paper will examine the necessary changes needed in these labor contracts if the automakers are to survive in the global economy.