GM and UAW Approve Labor Agreement Extending to 2028

Key Points

  • 🤝 General Motors (GM) and the United Auto Workers (UAW) have successfully ratified a labor agreement extending through 2028.
  • 📈 Despite initial concerns, GM managed to secure approval with a 55% to 45% vote margin, involving approximately 36,000 out of 46,000 UAW-represented employees.
  • ⏰ The agreement faced challenges as workers at several GM factories initially rejected the proposed contract.
  • 💼 The ratified deal offers a 25% base wage increase through April 2028, with cumulative increases of up to 33% for top pay.
  • 🌍 While GM has settled its agreement, Ford and Chrysler parent company Stellantis are still in the process of ratifying their respective contracts with UAW.
  • 🚗 The approval follows a historic six-week strike initiated by the UAW against all three major Michigan automakers.
  • 📆 The agreement sets the stage for labor stability in the automotive industry, addressing concerns raised during the negotiation process.

After an unnerving couple of weeks for General Motors (GM) that highlighted the possibility of not passing the recently proposed United Auto Workers (UAW) contract, the automaker has officially managed to ratify the agreement.

Set to last through 2028, it appeared at times over the last two weeks that GM may not be able to pass the UAW’s tentative agreement, as workers at several of its factories had voted to reject the updated contract. In the last few days, however, a number of key GM plants voted in favor of the deal, officially pushing the automaker past the ratification point to enact the four-and-a-half-year contract.

According to a report from Reuters this week, GM ratified the proposed contract by an approval-voting margin of 55 percent to 45 percent, with around 36,000 workers total having cast votes out of roughly 46,000 UAW-represented employees at the automaker. Although Ford and Chrysler parent company Stellantis are still working on ratifying the agreement, workers at both of the companies have maintained a higher approval margin throughout the ratification process.

GM officials did not immediately comment on the news, after voting for the union’s proposal ended on Thursday at 4:00 pm ET.

The ratification has yet to be officially announced by the UAW, though the agreement is set to offer a 25-percent base wage increase through April 2028, along with cumulative increases of up to 33 percent to top pay.

At the time of writing, around 67 percent of Ford workers who have voted have agreed to the proposal, along with around 66 percent of Stellantis employees. The likely approval of the contracts comes after a historic six-week strike was lodged by the UAW against all three of the Michigan automakers, marking the first time strikes had been enacted against each of the companies simultaneously.

Initial worker walkouts took place a day after previous UAW contracts expired on September 14, and GM was the last of the three automakers to come to a tentative agreement with the union on October 30.

UAW President Shawn Fain has been clear about plans to target other automakers in future unionization efforts, even saying that he planned to sit down at the bargaining table with the “Big Five or Big Six” in 2028, instead of the Big Three. In a separate statement, Fain also called workers at Tesla, Toyota and others “UAW members of the future.”

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