General Motors workers ratify labour deal, UAW eyes similar outcomes at Ford and Stellantis

General Motors' (GM) labour deal with the United Auto Workers (UAW) has been ratified, marking a significant victory for workers, Reuters reported on Thursday. The approval comes after an intense six-week campaign involving coordinated strikes across all three Detroit Three automakers.

While GM workers voted in favour of the deal, attention has now shifted to ongoing voting at Ford and Stellantis, where early margins suggest a favourable outcome for the agreement. This development follows years of stagnant wages and concessions, highlighting a shift in the auto industry's approach to workers' remuneration.

The UAW's GM vote tracking site revealed a 55 per cent to 45 per cent margin in favour of the contract, with nearly 36,000 out of approximately 46,000 UAW-represented GM workers participating. Although seven of GM's 11 assembly plants rejected the deal, significant approvals from key facilities, including Arlington, Texas, Detroit, Fairfax, Kansas, and Lake Orion, Michigan, helped turn the tide in favour of the deal.

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The new agreement with GM brings a 25 per cent increase in the base wage until April 2028, along with a cumulative 33 per cent rise in the top wage, reaching over $42 an hour with estimated cost-of-living adjustments.

The agreement, set to run through April 2028, lays the groundwork for similar deals at Ford and Stellantis. Ford workers, with a current approval rate of about 67 per cent, are expected to wrap up voting on Friday, while Stellantis voting is set to conclude next Tuesday, with an approximate 66 per cent approval rate. The industry-wide acceptance of such agreements reflects a broader shift in addressing worker compensation concerns.

Despite the victory, GM shares experienced a 1.1 per cent decline in Thursday trading. The turbulent six-week campaign led to an unprecedented series of coordinated strikes and brought attention to the UAW's focus on boosting workers' wages. The aftermath of the strikes prompted all three Detroit automakers to reach tentative agreements about two weeks ago.

(With inputs from Reuters)

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