Autoworkers approve GM labor contract

Members of the United Auto Workers (UAW) union have approved a new contract with General Motors (GM), marking the first of the Big 3 US automakers to secure a contract and capping a dramatic two months that included six weeks of strikes against the company.

The vote at GM, with all locals reporting, was 54.7pc voting for the contract, the tightest margin seen in voting of the three companies so far.

Many of GM's largest plants, including its Flint, Michigan, and Fort Wayne, Indiana, full-size pickup truck plants, and the Wentzville, Missouri, midsize pickup truck plant, voted against the deal but will still have to abide by the terms.

At Ford so far 66.7pc of workers have voted to approve the deal with 10 sites still needing to vote, including the large Dearborn, Michigan, stamping, truck and engine plants. Although there are more than 10,000 union members left to vote at Ford, all would need to vote no to deny the agreement, according to an Argus analysis of the current vote tallies. The lowest margin of approval at a large Ford plant was 42.8pc voting for the agreement at the Louisville, Kentucky, truck plant, one of three Ford sites that has voted the contract down so far.

At Stellantis, workers have voted 66.5pc in favor of the contract, with seven sites left to vote. The vote margin for the contract is 5,722, with at least 15,400 members left to cast their votes.

The union struck at plants at Ford, GM and Stellantis beginning 15 September, lasting for six weeks. The union targeted all three companies at the same time for the first time in its history.

The strategy won pay increases that were more than double the companies' initial offers, with union members gaining 25pc increases over the life of the contract, a restoration of cost-of-living adjustments that had been lost during the 2008/2009 financial crisis, and other concessions.

The gains made by the UAW have filtered to non-unionized automakers in the US. Japanese automaker Toyota said it would raise wages at its US plants by an undisclosed amount in 2024, while Honda said it would increase pay by 11pc beginning in January.

Hyundai is increasing wages for employees at its two US plants by 25pc between 2024-2028, matching the pay increase the UAW secured.

By Rye Druzin