Connect with us

Hi, what are you looking for?

Stock

GM union workers ratify UAW deal following contentious vote

DETROIT — General Motors union workers ratified a record deal with the United Auto Workers after a contentious final few days of voting, according to results posted Thursday morning by the union.

Much like the negotiations themselves, voting was not as smooth as many thought it would be. A majority of the Detroit automaker’s large assembly plants rejected the pact, however it wasn’t enough to offset support at smaller facilities and a handful of other assembly plants.

Ratification of the deal came under doubt Wednesday morning, after seven of GM’s 11 U.S. assembly plants rejected the pact. But a swing in voting results in favor of the deal, specifically at a SUV plant in Texas, gave the agreement a much needed lifeline.

According to the UAW’s vote tracker, the deal was supported by 54.7% of the nearly 36,000 autoworkers at GM who voted. The vote total was 19,683 in support versus 16,275 against — a margin of 3,409 votes.

Both the UAW and GM declined to comment on the results until they’ve been finalized.

Voting on similar contracts at Ford Motor and Chrysler-parent Stellantis is ongoing, with support of roughly 67% of unionized workers at each automaker who voted as of Thursday morning, according to the union. Barring any major shifts or swing in turnouts, those deals are likely to pass.

GM’s voting was closer, in part, due to the demographics of the company’s workforce. The automaker has the highest number of traditional workers on a percentage basis compared to its crosstown rivals. Such workers have voiced disapproval for the wage increases granted to them by the deals, compared to those offered to newer hires. They were also dissatisfied with pension contributions and retirement benefits.

For the union and UAW President Shawn Fain, the deals represent significant economic gains. They include 25% pay increases; a path to secure future jobs for union ranks such as battery plants; and a springboard for organizing efforts at other non-union automakers operating in the U.S. — a main goal of Fain moving forward.

For the companies as well as their investors, the contracts represent the top-end of forecasted increases in labor costs. While the automakers several times called foul on the union’s tactics, including six weeks of targeted strikes, they should be able to stomach the cost increases. That’s not to say they won’t be seeking offsets to the increases elsewhere in the forms of future investments, restructuring and other means.

Ford CFO John Lawler last month said the UAW deal, if ratified by members, would add $850 to $900 in costs per vehicle assembled. He said Ford will work to “find productivity and efficiencies and cost reductions throughout the company” to offset the additional costs and deliver on previously announced profitability targets.

This post appeared first on NBC NEWS

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    North Korea may be known as the hermit kingdom, but the isolated nation could be edging toward opening its borders to small numbers of...

    Editor's Pick

    One of the perks of being speaker of the House — or at least, one of the characteristics of it — is that you...

    Latest News

    Evacuations are underway across Hawaii’s Big Island and Maui as passing Hurricane Dora helps fuel wildfires that have damaged structures, prompted rescues and spurred...

    Latest News

    Former world No. 1 Caroline Wozniacki won her first competitive tennis match in three-and-a-half years on Tuesday, defeating Australian Kimberly Birrell 6-2 6-2 at...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com