On Tuesday, members of the United Auto Workers (UAW) union ratified a new agreement with General Motors (GM) following a contentious vote. The ratification was welcomed by both sides of the union and GM, who have been in negotiations since September this year.
The agreement provides a 3% salary increase for unionized GM workers, and raises the lump sum payment for retirees from $1,000 to $2,000. It also provides an additional $1.5 billion for the voluntary employee benefit association trust. In addition, GM has agreed to invest $11.1 billion in its U.S. plants over the next four years.
The agreement was passed by a narrow margin, with 57.3% of the 53,000 union members voting in favor of the deal. Among those who voted against the agreement, many expressed concerns that GM was making too many concessions to the union. There were also complaints about the lack of job security for long-term GM workers.
However, UAW leaders argued that the agreement was the best that could be reached given the difficult economic times. They also pointed out that GM had gone to great lengths to preserve workers’ jobs and provide the best wages and benefits for its employees.
The agreement also includes provisions that would make GM more competitive in the global market, such as an alliance with LG Chem to make electric vehicle battery cells, and a $2 billion investment in factories in Ohio, Indiana, Michigan, and Tennessee.
Both the UAW and GM have welcomed the agreement, which is now set to benefit both parties for the next four years. The ratification of the deal marks the end of a long and hard-fought negotiation process that was fraught with contention and uncertainty.
GM Union Members Say ‘Yes!’ to UAW Deal After Heated Vote
