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The Street
The Street
Tony Owusu

GM, UAW agree to labor peace after close vote

General Motors has come to an agreement with the United Auto Workers union on a record contract that was in danger of falling apart due to lack of support.

But in the end, more than 53%  of GM's UAW employees voted in favor of the deal. 

Reaching an agreement was far from an assured thing as the majority of GM's large assembly plants actually voted against ratifying the labor agreement, but heavy voting in favor of the deal at its smaller plants was more than enough to offset the imbalance. 

Related: Another legacy automaker has a powerful response to UAW auto union threat

For example, the company's Flint Truck plant in Michigan saw 53% of its 3,220 employees vote against ratifying the deal. About 63% of the 1,450 union members at the Lansing Delta Assembly plant in Texas also voted against the deal. 

But results like the 98% yes votes among the nearly 200 union workers at the Brownstown Battery plant in Michigan and the more than 70% yes votes at the Flint Otterburn plant in Michigan were enough to turn the tide. 

Similar contract votes are also ongoing at GM rivals Ford Motor (F) -) and Stellantis (STLA) -), but industry watchers expect those votes to be less contentious with about two-thirds of unionized workers at each automaker voting in favor of a deal.

Part of the reason for the disparate voting outcomes at GM is the demographics of the company's workforce. GM has the highest number of traditional workers — as opposed to temporary workers — among the Big 3, CNBC reported

So those workers want what UAW President Shawn Fain has promised in the past: a 32-hour workweek and better retirement benefits. 

Seven of GM's 11 assembly plants rejected the deal early Wednesday morning, placing the 'yes' outcome firmly in doubt.

The new contracts at each of the Big Three automakers prominently feature 25% wage increases, down from the 40% increases the union was initially demanding. The contracts also grant workers cost-of-living adjustments, larger retirement contributions and better benefits, among other protections.

The worker strikes that had lasted for more than a month came to an end after the union and the automakers came to tentative agreements on a deal and the votes are the final step in a process to usher in at least 4-1/2 years of labor peace.  

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