GM votes in favor of UAW contract at key Texas plant, following rejections

Key Points

  • 🗳️ GM workers at a key Texas plant voted to approve a proposed UAW contract.
  • 📉 Multiple rejection votes occurred at other GM facilities recently.
  • 🏭 Arlington, Texas plant’s approval significantly increases the chance of ratifying the agreement.
  • ⏰ Voting completion set for Thursday at 4:00 pm ET; other GM plants, including Lockport, New York, still need to vote.
  • 📊 Current overall voting trend across GM’s factories: 52% approval, 48% rejection.
  • 💰 Proposed agreement includes a 25% wage increase lasting until April 2028, boosting wages to over $42 per hour.
  • 🌐 GM’s profit forecast for the year affected by strikes; contract includes nearly $2 billion in investments for EVs.
  • 🚗 Ford and Stellantis workers show higher approval rates for similar contracts compared to GM.

General Motors (GM) workers at a key Texas plant have voted to approve a proposed United Auto Workers (UAW) contract, following multiple rejection votes at some of the automaker’s other factories in the last several days.

After GM workers voted to reject the tentative agreement at a Flint, Michigan factory last Friday, the company’s union employees at another facility in Michigan, as well as plants in Indiana, Missouri and Tennessee, have all voted against the contract. The UAW’s online vote tracker has veered toward approval, though GM’s margins for passage have been much tighter than those for Ford or Stellantis.

On Wednesday, over 60 percent of UAW workers at GM’s Arlington, Texas assembly plant voted in favor of passing the contract, significantly increasing the company’s chance of ratifying the agreement, according to a report from Reuters. The Arlington factory employs around 5,000 UAW-represented workers, representing the most of any of GM’s facilities.

Voting is set to be completed by Thursday at 4:00 pm ET, and other GM plants, including its Lockport, New York facility, still need to vote.

At the time of writing, passage of the contract is leading across GM’s factories, with 52 percent of total voters having voted to approve the agreement and 48 percent having voted to reject it. This represents around 22,150 workers of roughly 46,000 people employed by GM who are represented by the union.

Workers at several other GM plants have rejected the deal as well, including those at a Fort Wayne, Indiana truck plant (60 percent against), a Wentzville, Missouri factory (53 percent against) and a Lansing Grand River, Michigan plant (58 percent against).

At Ford, roughly 66 percent of workers who have voted have voted in favor of adopting the contract, while around 79 percent of Stellantis workers who have voted have also voted in favor.

The new agreement, if passed, would introduce a 25-percent wage increase through the duration of the contract, which lasts until April 2028. During that time, the top wage will gradually increase by as much as 33 percent, including cost-of-living adjustments and other benefits. The resulting contract is expected to boost wages to more than $42 per hour.

The news comes after GM pulled its profit forecast for the year last month due to the effects of the strikes. GM has also announced plans to delay the opening of its Ultium Cell plant in Tennessee, though the contract also includes nearly $2 billion in investments dedicated to (EVs).

It was also reported on Wednesday that GM has purchased Tesla gigacasting supplier Tooling and Equipment International (TEI).

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