GM union workers have ratified a new labor agreement with United Auto Workers (UAW) following a contentious vote. The majority of union workers at GM supported the new four-year deal. The agreement notably includes $11,000 in bonuses for union employees, as well as wage increases and a path for temporary workers to become permanent.
The contract also provides $8.3 billion in investments for the U.S. facilities and jobs. Workers at GM facilities across the United States voted to approve the contract, which was ratified by a narrower margin than negotiated by previous labor agreements.
In a statement following the vote, GM CEO Mary Barra said, “This agreement, and the tremendous spirit and cooperation of our UAW partners, strengthens our competitiveness and sets forth a clear path for the future.”
The new contract follows GM’s decision to idle several factories in North America, prompting questions about the long-term health of the UAW’s representation of GM workers. However, UAW President Gary Jones said the union won significant victories in the contract, citing improved wages and the bonuses for members.
He added, “Collective bargaining allows us to distribute the rewards of productivity advances to the people who make them. Looking ahead, more will be possible when we build on our relationship to create profitable growth.”
The vote marks the end of months of difficult negotiations, which included strikes at GM facilities throughout much of October. The agreement provides much-needed certainty and stability for GM’s workers and represents a positive step forward for the ongoing partnership between the UAW and GM.