The United Auto Workers (UAW) union has ratified a new labor deal with General Motors (GM), marking a significant milestone in the auto industry. The agreement, which was approved with 54.7% of votes in favor, promises a 25% increase in base wage through April 2028. This will cumulatively raise the top wage by 33%, compounded with estimated cost-of-living adjustments to over $42 an hour. Top assembly plant workers are set to receive immediate 11% raises, and by the contract's expiration in 2028, they are expected to earn roughly $42 per hour.
Despite the landmark agreement, the deal has not been without controversy. A significant minority of workers expressed dissatisfaction, arguing for larger pay raises and bigger pension increases. Some veteran workers voiced concerns about not receiving as much as newer employees under the terms of the deals, including retirement benefits. There was also a lingering distrust in union leadership due to past corruption scandals.
The ratification process saw setbacks at two GM plants and by Ford workers in Louisville, Kentucky. The Spring Hill plant reported the greatest opposition, with only 32% of 2,300 members supporting the deal. At the Flint Truck plant, 52% of the 3,400 members voted against the deal. In Kentucky, 55% of the members at the Kentucky Truck plant voted against the deal.
Despite these challenges, the new contract represents the biggest victory for the union in decades. However, it's clear that the union did not win everything it had on its ambitious wish list. The contract does guarantee that at least at some battery plants, EV batteries will be made by unionized workers.