The tentative labor agreement between the United Auto Workers (UAW) union and General Motors Company (NYSE:GM) appears headed for ratification after workers at a number of major plants voted in favor of the proposal Wednesday, according to results published by the local union chapters.
There was concern Wednesday morning that the deal could be in jeopardy after several plants voted narrowly to oppose the deal, including a Buick and Chevrolet crossover plant in Michigan, as well as truck plants in Missouri and Indiana.
By the afternoon, though, 54% of the roughly 30,700 counted votes had been cast in favor of the agreement, which would increase base wages by 25% through April 2028 and cumulatively increase the top wage by 33% compounded with COLA (cost-of-living adjustments) to more than $42 per hour for the 46,000 UAW workers at GM plants.
Some union members have criticized the deal for not securing a 32-hour work week and better retirement benefits, according to reports, which UAW President Shawn Fain initially called for.
Notably, results are still pending at other facilities, including at a crossover plant in Michigan, where a local chapter voted 60% against the deal.
There has been some opposition among workers at the other Detroit automakers, Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA, EPA:STLA) to their tentative agreements, but both have seen a higher percentage of plants approve the deal overall.
The deals with each automaker were reached separately, so while there isn’t much daylight between them, the votes are independent from one other.
GM has more UAW members working at its plants than either Ford or the Chrysler plant.
Were the deal not ultimately ratified, it would create a tough line to walk for Fain, who celebrated the deal when it was announced after a six-week targeted strike. Following the agreement with Ford, for instance, Fain said, "We told Ford to pony up and they did.”
If enough plants vote against the deal, the parties could reopen negotiations and strikes could even resume down the line.
GM could also follow the lead of Mack Trucks, which, when faced with a rejection vote from union members, simply re-extended its existing offer.
The automaker also faces the possibility of even more losses if the strike resumes. Last month, the company withdrew its full-year guidance due to the impact of the strike. At the time, GM said the labor stoppage had cost the company $800 million.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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