Unionized General Motors (GM) workers approve the UAW deal after a divisive voting process.

Unionized General Motors (GM) workers approve the UAW deal after a divisive voting process.

 

KEY POINTS

 

1:In a tumultuous voting period, General Motors union members successfully approved an unprecedented agreement with the United Auto Workers. Despite initial uncertainties when seven out of GM's 11 U.S. assembly plants opposed the deal, the final vote revealed 54.7% support from almost 36,000 autoworkers, as per the UAW's vote tracker.

 

2:Detroit - General Motors unionized workers have officially approved an unprecedented agreement with the United Auto Workers, as disclosed in the union's Thursday morning announcement. The voting process, mirroring the intensity of the negotiations, faced unexpected challenges. Despite a majority of the prominent assembly plants in Detroit rejecting the deal, support from smaller facilities and a few other assembly plants ultimately secured the ratification.

 

3:Wednesday morning brought uncertainty to the ratification of the deal, as seven out of GM’s 11 U.S. assembly plants initially rejected it. However, a pivotal shift in voting results, particularly at an SUV plant in Texas, provided a crucial boost to the agreement. The UAW’s vote tracker indicates that the deal secured the support of 54.7% of nearly 36,000 GM autoworkers who participated in the vote, with 19,683 in favor and 16,275 against—a margin of 3,409 votes. Both the UAW and GM refrained from commenting on the results until finalization.

 

4:Simultaneously, voting is ongoing for similar contracts at Ford Motor and Chrysler-parent Stellantis, showing approximately 67% support from unionized workers at each automaker as of Thursday morning, per the union. Unless significant shifts occur, these deals are likely to pass.

 

5:.GM’s close voting outcome can be attributed, in part, to the demographic composition of its workforce. With the highest percentage of traditional workers compared to its crosstown rivals, these employees expressed dissatisfaction with the provided wage increases in contrast to those offered to newer hires. Additionally, discontent was voiced regarding pension contributions and retirement benefits.

 

6:

 

…The recent agreements are a significant economic victory for the union and UAW President Shawn Fain. These deals encompass substantial gains, including a remarkable 25% pay raise, a pathway to secure future jobs for union members in areas like battery plants, and a strategic foundation for organizing efforts at non-unionized automakers in the U.S., a key objective for Fain.

 

Ford’s CFO, John Lawler, recently stated that if the UAW deal, once approved by members, would add $850 to $900 in costs per assembled vehicle. He emphasized Ford’s commitment to identifying productivity enhancements, efficiencies, and cost reductions across the company to counterbalance the added costs and meet previously set profitability targets.