GM-UAW Deal Teeters: General Motors’ (GM.N) potential labor deal with the United Auto Workers (UAW) union is on the cusp of ratification as votes were tallied on Wednesday. After garnering over 60% approval from union members at GM’s substantial Arlington, Texas assembly plant earlier in the day, additional favorable votes have brought the deal close to securing majority approval. While some large assembly plants initially voted against the deal, reports of failure were counteracted by the strong support from smaller facilities like warehouses and parts facilities.
If ratified, this would signify the first approval of a deal, spanning until April 2028, with one of the Detroit Three automakers. Voting is still ongoing at Ford (F.N) and Stellantis (STLAM.MI), where workers are showing comfortable margins in favor of ratification. The current UAW GM vote tracker indicates a 54% to 46% approval margin, with almost 32,000 out of approximately 46,000 UAW-represented GM workers having cast their votes. Arlington, with around 5,000 UAW members, holds the largest count among GM plants.
While voting officially concludes on Thursday at 4 p.m. EST, most votes are expected to be cast on Wednesday. The six-week UAW strike against the Detroit Three aimed at securing improved wages, working conditions, and cost-of-living adjustments. All three companies tentatively agreed to deals about two weeks ago. However, workers at other GM assembly plants rejected the deal, including those in Fort Wayne, Indiana; Wentzville, Missouri; Lansing Grand River, and Lansing Delta Township plants. Seven of GM’s 11 assembly plants rejected the agreement, but Arlington, along with plants in Detroit, Fairfax, Kansas, and Lake Orion, Michigan, approved it.
Only nine facilities are yet to report vote totals on the UAW vote tracker, including GM’s Lockport, New York, components plant. Those in favor of the agreement currently lead by almost 2,500 votes, and many of the facilities yet to vote include workers in line for substantial pay increases upon ratification.
The new UAW-GM agreement grants a 25% increase in base wage through April 2028, cumulatively raising the top wage by 33%, factoring in estimated cost-of-living adjustments to over $42 an hour. As for Ford and Stellantis, approximately 66% of Ford workers and 72% of Stellantis workers who have voted are in favor of the UAW deal, according to UAW figures. Ford voting is scheduled to conclude on Friday, while Stellantis is set to close next Tuesday.
Automakers, initially focused on cost-cutting and navigating challenges in electric vehicle (EV) manufacturing to catch up with Tesla (TSLA.O), have faced lower margins on EVs, slowing down their transition. GM, affected by the strike, also withdrew its full-year profit forecast in October and delayed a $4 billion electric truck plant in Michigan.
Also Read: UAW Historic Win: Ford Deal Brings Big Pay Hikes and Reverses Concessions
After garnering over 60% approval from union members at GM’s substantial Arlington, Texas assembly plant earlier in the day, additional favorable votes have brought the deal close to securing majority approval. While some large assembly plants initially voted against the deal, reports of failure were counteracted by the strong support from smaller facilities like warehouses and parts facilities.
If ratified, this would signify the first approval of a deal, spanning until April 2028, with one of the Detroit Three automakers. Voting is still ongoing at Ford (F.N) and Stellantis (STLAM.MI), where workers are showing comfortable margins in favor of ratification. The current UAW GM vote tracker indicates a 54% to 46% approval margin, with almost 32,000 out of approximately 46,000 UAW-represented GM workers having cast their votes. Arlington, with around 5,000 UAW members, holds the largest count among GM plants.
While voting officially concludes on Thursday at 4 p.m. EST, most votes are expected to be cast on Wednesday. The six-week UAW strike against the Detroit Three aimed at securing improved wages, working conditions, and cost-of-living adjustments. All three companies tentatively agreed to deals about two weeks ago. However, workers at other GM assembly plants rejected the deal, including those in Fort Wayne, Indiana; Wentzville, Missouri; Lansing Grand River, and Lansing Delta Township plants. Seven of GM’s 11 assembly plants rejected the agreement, but Arlington, along with plants in Detroit, Fairfax, Kansas, and Lake Orion, Michigan, approved it.
Only nine facilities are yet to report vote totals on the UAW vote tracker, including GM’s Lockport, New York, components plant. Those in favor of the agreement currently lead by almost 2,500 votes, and many of the facilities yet to vote include workers in line for substantial pay increases upon ratification. The new UAW-GM agreement grants a 25% increase in base wage through April 2028, cumulatively raising the top wage by 33%, factoring in estimated cost-of-living adjustments to over $42 an hour.
As for Ford and Stellantis, approximately 66% of Ford workers and 72% of Stellantis workers who have voted are in favor of the UAW deal, according to UAW figures. Ford voting is scheduled to conclude on Friday, while Stellantis is set to close next Tuesday. Automakers, initially focused on cost-cutting and navigating challenges in electric vehicle (EV) manufacturing to catch up with Tesla (TSLA.O), have faced lower margins on EVs, slowing down their transition. GM, affected by the strike, also withdrew its full-year profit forecast in October and delayed a $4 billion electric truck plant in Michigan.
Our Reader’s Queries
What is the new GM UAW contract 2023?
The recent agreement between the UAW and GM is set to bring a significant boost to base wages, with a 25% increase in effect until April 2028. This will result in a cumulative rise of 33% for the top wage, which will be further compounded by estimated cost-of-living adjustments, bringing it to over $42 per hour.
What is the ratification bonus for the UAW GM?
Upon ratification, GM’s top wage scale workers will receive an immediate 11% raise, while all workers will be granted a $5,000 ratification bonus.
What did GM offer the UAW?
Under the new contracts with all three companies, veteran employees will receive a 25% increase in their salaries over the duration of the agreement, with an initial 11% boost. This figure rises to approximately 33% when factoring in cost of living adjustments, according to the union.
What did UAW get in new contract?
Union workers will receive a significant boost in pay with the new contract, including an immediate 11% increase. Over the next 4½ years, union members can expect a total pay increase of 25%. This agreement is a positive step towards fair compensation for hardworking union employees.