US union’s paid parental leave deal for auto workers could mark key starting point

NEW YORK - The United Auto Workers (UAW) union’s tentative agreements with Detroit’s three automakers include a new benefit: two weeks of paid parental leave for full-time employees. That is almost nothing compared with what workers in other rich nations receive. But it is significant in other ways.

The United States has no nationally mandated paid time off for new parents, and only about a quarter of American private-sector workers have access to the benefit. Two weeks is far less than what is available in Europe and Asia, where workers by law can get six months, or even more than a year.

It also pales in comparison to the leave for salaried workers at General Motors (GM), which can be as long as 12 weeks, but it is nevertheless a step up for the roughly 146,000 UAW members covered by the agreements and their families.

The UAW, one of the most iconic US unions, has not made parental leave a priority in its auto contracts before, and the measure paves the way for more work-life balance measures to feature in future negotiations. Its inclusion signals that labour leaders are paying attention to the needs of a new generation of members. 

“Compared with other countries, two weeks seems paltry, but compared with other workers in the US, it’s hugely significant,” said Dr Rebecca Givan, associate professor at Rutgers University’s School of Management and Labour Relations. “You always want to open the door when you’re winning something in a union contract that’s never been there before, and it’s certainly possible to fight for more in the next contract now that this provision is present.”

A spokesperson for UAW declined to comment. 

The leave is a small part of an inventory of important wins, from big raises to richer retirement benefits, for workers at Ford Motor, GM and Stellantis. GM workers voted in favour of ratifying their contract on Nov 16, and Ford and Stellantis are close behind.

Mr Jacob Bishop, a 24-year-old UAW member at a Stellantis Jeep Grand Cherokee assembly plant in Detroit, said the tentative agreement – including its pay hikes as well as the couple of weeks of parental leave – will make it more feasible for employees like him to become parents. “This contract can definitely help start some first-time families,” he said. “It does give me some peace of mind knowing that it’s there now, just to remove that extra barrier.” He said he hopes the parental leave will be expanded in a future contract by the time he is ready to become a dad.

“No contract is in a vacuum – you have a contract, and you build on it the next time around,” he said. “So I think a win is a win.”

Research suggests that important health benefits, such as a reduction in preventable infant hospitalisations and improved maternal mental health, require months of time away from work, not weeks, to materialise, said Dr Maya Rossin-Slater, associate professor of health policy at Stanford University. Even so, the change will help.

“Most workers in America make it work by cobbling together whatever benefits they have, saving up their vacations and so on, in order to be able to take time off after having a child,” Dr Rossin-Slater said. “So with this two-week policy, perhaps people won’t have to rely so much on other benefits.”

Paid time off for parents may play a role in UAW’s campaign to organise factories at non-union carmakers such as Toyota Motor and Honda Motor, where workforces tend to be younger, said Dr Givan. Those companies may decide to improve their parental leave benefits in response to the UAW wins, like they have with wages, she said.

Ultimately, for most would-be working parents, paid leave is just one part of the financial equation.

Mr Ryan Ashley, a 24-year-old UAW member at Ford’s Cleveland Engine Plant, said: “It’s a step in the right direction.” He said he wished the parental leave was longer, and could be used by parents who already have kids but could use more time off with them. He also said he wished the tentative agreement included better retirement arrangements and bigger raises, which would make it easier to afford to become a dad.

“I’d like to have kids, but I’ve got to look at the economy first,” Mr Ashley said. “Our buying power ain’t what it was,” he said. BLOOMBERG