Members of the United Auto Workers strike the General Motors Lansing Delta Assembly Plant on September 29, 2023 in Lansing, Michigan.
Bill Pugliano | Getty Images
DETROIT – General engines Union workers have ratified a record deal with the United Auto Workers after a contentious last few days of voting, according to results released by the union Thursday morning.
As with the negotiations themselves, voting did not go as smoothly as many thought. A majority of the automaker’s major assembly plants in Detroit rejected the pact, but it was not enough to offset support for smaller plants and a handful of other assembly plants.
The deal’s ratification came into question Wednesday morning after seven of GM’s 11 U.S. assembly plants rejected the pact. But a swing in voting results in favor of the deal, particularly at an SUV factory in Texas, gave the agreement a much-needed lifeline.
According to UAW voting records, the deal was supported by 54.7% of the nearly 36,000 GM autoworkers who voted.
Both the UAW and GM declined to comment on the results until they are final.
Vote on similar contracts on Ford engine and Chrysler parent Stellantis is underway, with the support of about 67% of unionized workers at each automaker who voted Thursday morning, the union said. Barring any major shifts or swings in attendance, these deals are likely to go ahead.
GM’s vote was closer, in part because of the demographics of the company’s workforce. The automaker has the highest number of traditional employees in percentage terms compared to its rivals in the city. Such workers have expressed disapproval of the pay increases granted to them by the deals, compared to those offered to newer employees. They were also dissatisfied with pension contributions and pension benefits.
For the union and UAW President Shawn Fain, the deals represent significant economic benefits. They include pay increases of 25%; a path to securing future jobs for union members, such as battery factories; and a springboard for organizing efforts among other non-union automakers operating in the U.S. – a key goal of Fain going forward.
For both the companies and their investors, the contracts represent the pinnacle of predicted labor cost increases. Although automakers have criticized the union’s tactics several times, including six weeks of targeted strikes, they should be able to stomach the cost increases. That’s not to say they won’t seek compensation for the increases elsewhere in the form of future investments, restructuring and other means.
Ford CFO John Lawler said last month that the UAW deal, if ratified by members, would add $850 to $900 in costs per vehicle assembled. He said Ford will work to “find productivity, efficiency and cost savings across the company” to offset the additional costs and achieve previously announced profitability targets.