On Thursday, Cruise, the robotaxi division of General Motors (NYSE:GM), announced that it had reached a historic milestone by becoming the first company in the driverless car industry to establish labor union agreements.
According to the company’s announcement, General Motors has signed a labor union agreement with two local San Francisco chapters representing electrical workers and janitors, the International Brotherhood of Electrical Workers Local 6 and Service Employees International Union Local 87.
The agreement will have Cruise employ “dozens” of workers who will construct and staff car-charging facilities, the company said.
In the past, unions and robotaxi firms experienced tense relations as unions closely monitored technological advancements, given the potential for increased automation leading to workforce reductions. Specifically, in the automotive sector, the United Auto Workers union expressed apprehension about possible job losses stemming from the transition to electric vehicles, making job security a key focus during ongoing labor negotiations.
Shares of GM are down 1.34% in mid-day trading on Thursday.