General Motors’ labour deal nears approval as UAW votes tally

Representative Image (Courtesy: General Motors)

The tentative labour deal between General Motors (GM) and the United Auto Workers (UAW) union is inching closer to ratification as votes were tallied on Wednesday. A crucial factor in this momentum was the endorsement by over 60% of union members at GM’s Arlington, Texas, assembly plant earlier in the day. While some larger plants initially voted against the deal, subsequent support from Arlington and positive voting in smaller facilities has brought the deal close to securing majority approval.

Potential historic ratification

If approved, this would mark the first ratification of a deal, extending through April 2028, among the Detroit Three automakers. Ford and Stellantis are still in the voting process, and indications suggest comfortable margins in favour of ratification. The UAW’s GM vote tracker presently shows a 54% to 46% approval margin, with almost 32,000 workers having cast votes out of approximately 46,000 UAW-represented GM workers.

Critical role of Arlington plant

Arlington, hosting around 5,000 UAW members, holds significance as the GM plant with the highest number of members. The plant’s support has played a crucial role in steering the deal towards potential approval. Voting is officially scheduled to conclude on Thursday at 4 p.m. EST, though the majority of votes are expected to be cast on Wednesday.

Strike background and wider rejections

The UAW went on a strike for over six weeks against the Detroit Three, advocating for improved wages, working conditions, and cost-of-living adjustments. Although all three companies tentatively agreed to deals about two weeks ago, several GM assembly plants, including Fort Wayne, Indiana, and Lansing Grand River, rejected the proposed agreement. Seven out of GM’s 11 assembly plants voted against the deal.

Remaining vote tally and salary increase

Nine facilities, including GM’s Lockport, New York, components plant, are yet to report vote totals. Those in favour of the agreement currently have a lead of almost 2,500 votes. The new agreement with GM promises a 25% increase in the base wage through April 2028, potentially elevating the top wage by 33% with estimated cost-of-living adjustments to over $42 an hour.

Industry-wide voting and market dynamics

Ford and Stellantis workers are also participating in the voting process, with positive trends indicating potential ratification. Automakers, grappling with EV production challenges and lower margins, are navigating a complex path in the evolving automotive landscape. GM’s October decision to withdraw its full-year profit forecast and delay a $4 billion electric truck plant reflects the industry’s ongoing adjustments.

The developing scenario points towards a historic labour deal ratification, signifying a collaborative step forward in the automotive sector.

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