In a major breakthrough for the United Auto Workers (UAW) union, General Motors (GM) has agreed to bring electric vehicle battery plants into the union's national contract, ensuring their unionization. This decision has prompted the UAW to pause any further expansions of their strikes against Detroit's three automakers, with the possibility of adding additional plants to the strikes later. UAW President Shawn Fain, wearing a T-shirt that boldly said "Eat the Rich," made the announcement in a video appearance, stating that GM's move would have a profound impact on the union and the auto industry as a whole.

The breakthrough came after the UAW threatened to strike at a highly profitable SUV plant in Arlington, Texas, prompting GM to make significant concessions. Fain emphasized that GM's decision represents a crucial step in the transition from combustion engines to electric vehicles, which will define the future of the industry. The union's demands also included representing 10 battery factories proposed by the automakers, which GM initially contended should be negotiated separately. However, the change announced on Friday means that the four U.S. GM battery plants will now be covered under the union's master agreement, a monumental development according to Marick Masters, a business professor at Wayne State University in Detroit.

GM's offer, made in writing, will be scrutinized by the union, as it goes beyond their initial demands. Masters speculated that GM may be expecting something in return for their concession on the economic items. As for Ford and Stellantis, they declined to comment on Fain's announcement. However, the shares of all three automakers rose following the announcement, indicating the anticipation of nearing deals.

The automakers had resisted bringing battery plants into the national UAW contracts, arguing that the union cannot represent workers who have not been hired yet. They also insisted that joint venture partners should be involved in the negotiations. Another concern was that large union contracts could drive up the prices of their electric vehicles, making them more expensive compared to nonunion competitors like Tesla. Despite the automakers' apprehensions, the UAW maintained that labor expenses only make up a small portion of a vehicle's cost, and the companies can afford to offer higher wages considering their significant profits.

Over the past two weeks, the UAW has expanded its strikes, initially targeting one assembly plant from each of the three automakers. The strikes then spread to 38 parts-distribution centers run by GM and Stellantis. Last week, the union added a GM crossover SUV plant in Lansing, Michigan, and a Ford SUV factory in Chicago to the strikes. However, Ford was spared from further strikes due to progress in talks. The union strategically structured their walkouts to allow the automakers to continue producing their top-selling and most profitable vehicles, such as pickup trucks and SUVs.

This year, UAW President Shawn Fain introduced a new strategy by targeting a limited number of facilities at all three automakers simultaneously. Approximately 17% of the union's 146,000 workers are now on strike, totaling around 25,000 workers. The fate of the battery plants had been a significant hurdle in reaching a final agreement between the UAW and the “Detroit Three” automakers. The agreement between GM and the UAW to include the battery plants in the national contract could potentially influence Ford and Stellantis to follow suit. This decision has far-reaching implications for the labor arrangements in the U.S. as the country transitions away from fossil fuels and towards electric vehicles.