United Auto Workers members have ratified a record labor deal with General Motors Company (NYSE:GM) following a few days of votes at union local chapters.
Roughly 54% of nearly 36,000 union members voted to approve the deal, according to the UAW’s vote tracker on Thursday.
On Wednesday morning, there were doubts as to whether the deal would pass at all after 7 of GM’s 11 assembly plants voted against the agreement. However, a late swing, fueled by an Arlington, Texas plant, shifted momentum back toward ratification.
The record contract 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.
Voting is underway on similar deals with fellow Detroit automakers Ford Motor Company (NYSE:F) and Chrysler-owner Stellantis NV (NYSE:STLA, EPA:STLA). Both deals have received roughly two-thirds of votes in favor of ratification thus far, making them highly likely to pass.
Shares of GM fell 1.5% Thursday afternoon.
The question now is how the new deals will affect costs. Last month, Ford CFO John Lawyer estimated that the agreement would increase costs by $850 to $950 per vehicle.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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