United Auto Workers Ratify New Labor Contract with Detroit Automakers

Ratification of UAW Labor Contract by General Motors and Stellantis

The United Auto Workers (UAW) labor contract, negotiated with Detroit automakers, has been ratified by union members from both General Motors and Stellantis. Despite some large facilities voting against the contract, the UAW’s vote tracker confirms its ratification. This puts to rest any concerns that GM might have to reopen negotiations.

Ford’s Negotiations and Possible Ratification

While Ford’s voting process is still ongoing, its negotiations with the union have been the most successful. Ford offered more favorable deals compared to rival automakers, and the contract is on the verge of ratification, possibly even by the time you read this.

Ratification Results for General Motors and Stellantis

General Motors’ unionized employees ratified their contract with a 54.7 percent majority, which was a closer margin compared to the other companies. Approximately 70 percent of Stellantis workers voted in favor of ratifying the deal. Although some plants are yet to conclude voting, the number of affirmative votes is significantly higher than the negative votes, making it mathematically impossible for the contract not to move forward.

Ford’s Lean Margin for Victory

Ford’s margin for victory relies on the results of UAW Local 600, representing workers at the Dearborn Truck Plant and several part facilities in Michigan. With nearly 69 percent of workers voting in favor, it would be highly unlikely to see a different outcome. The odds of a significant number of remaining UAW members voting against the contracts are exceptionally low.

Key Highlights of the Contracts

All three contracts include wage increases of 25 percent until 2028. Most workers will also receive an immediate pay raise of around 10 percent and bonus pay upon ratification. The contracts also restore cost-of-living adjustments and retirement benefits lost by the union after 2008.

Confirmation and Future Plans

Once the voting is officially confirmed, a detailed breakdown of the contracts will be available. Automakers and the UAW have yet to make official comments on the matter. GM leaders plan to hold an investor meeting after the contract is ratified to discuss the financial implications for the company. Ford and Stellantis are expected to follow suit. It is likely that the companies may use union compensation to justify price adjustments or modifications to investments.

UAW’s Satisfaction and Recruitment Efforts

The UAW is expected to boast about the new contract, claiming that it provides more value to workers each year compared to the previous four-year contract signed in 2019. The union will also use this as an opportunity to attract workers from non-union facilities to join its ranks.

[Image: UAW]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.