UAW Members Reject GM Contract Proposal, Uncertainty Looms Over Future Negotiations

This vote suggests that the approval of the contract, which would significantly increase costs for GM, is uncertain.

United Auto Workers (UAW) members at General Motors’ Flint assembly plant in Michigan have narrowly rejected a proposed contract with the automaker, according to the local UAW chapter.

This vote suggests that the approval of the contract, which would significantly increase costs for GM, is uncertain.

In a Facebook post on Thursday, UAW Local 598 announced that 51.8% of the votes cast were against the proposed deal. General Motors has declined to comment on the matter while the ratification process is ongoing.

Following this news, GM’s stock experienced a 1.2% decline in morning trading, reaching a more than three-year low of $26.30. The Flint plant employs 4,746 workers.

Workers at GM’s other facilities across the country are expected to vote on the agreement in the coming weeks.

So far, approximately 58% of workers have voted in favor of the deal at various GM facilities, as reported by a UAW vote tracker.

Notably, voting is yet to occur at some of GM’s major plants, such as the Arlington assembly plant in Texas and the Fort Wayne truck plant in Indiana, which manufacture some of the company’s most profitable vehicles.

This round of contract voting is part of a larger series of negotiations between the United Auto Workers and the “Detroit Three” automakers, including Stellantis, General Motors, and Ford Motor, following the first coordinated strike against these companies.

The Flint assembly plant, where the Silverado heavy-duty pickup truck is produced, played a significant role in these negotiations.

The UAW’s new agreement, covering 46,000 workers at GM, includes a 25% increase in the base wage through April 2028, ultimately raising the top wage by 33% with estimated cost-of-living adjustments, bringing it to over $42 an hour.

Some experts, like Erik Gordon, a University of Michigan business professor, believe that GM is unlikely to offer more than an additional 15 cents in negotiations.

This historic deal with the Detroit Three has also prompted non-unionized automakers to offer pay increases.

Honda Motor, for example, announced an 11% pay increase for its production workers at U.S. facilities starting in January.

Subaru Corp’s Indiana Automotive division also plans to make an announcement regarding compensation for its U.S. associates.

In a separate development, the UAW reported that Volvo Group-owned Mack Trucks has informed the union that the offer made to striking workers on October 1st is its “last, best, and final” offer. A vote on this offer has been tentatively scheduled for Wednesday.