The United Auto Workers (UAW) has decided to suspend further strikes against the Detroit Three auto plants following a significant concession from General Motors (NYSE:GM).

According to a Reuters report, GM has shown an unexpected willingness to allow union contracts to cover workers at joint-venture battery plants.

This move by GM could be a game-changer if rivals Ford Motor (NYSE:F) and Stellantis (NYSE:STLA) decide to follow suit. It could pave the way for final agreements that would bolster the UAW’s position as the auto industry shifts towards electric vehicle manufacturing.

“Our strike is working, but we're not there yet,” UAW President Shawn Fain said in a live update on negotiations with the three automakers.

While automakers have more than doubled initial wage hike offers and agreed to raise wages along with inflation, the union is still pushing for higher wages, abolishing a two-tier wage system, and expanding unions to battery shops at all companies.

See Also: UAW’s Shawn Fain Announces Breakthrough In Strike Talks With GM; Eyes On Ford And Stellantis Next

The UAW had been intensifying action against different automakers weekly to meet its demands. Fain explained that the threat of a strike against GM’s Arlington, Texas, plant that manufactures high-profit SUVs like the Cadillac Escalade prompted GM to agree that EV battery factories would become union plants with UAW contracts.

As the sale of electric vehicles grows, thanks to federal subsidies supporting a U.S. transition to lower carbon emissions, the union advocates for these workers to receive the same pay and job protections granted to other members.

In his live broadcast, Fain praised GM for agreeing to lay the foundation for a just transition, adding that the Detroit company had “leapfrogged” the pack in negotiations with the UAW.

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