When the United Auto Workers (UAW) was unable to reach agreement on pay increases for their workers, they began strike action on September 15th, 2023 after the current labour contract ran out. The UAW is seeking pay rises of more than 40% over the next four years, a shorter working week, improved retiree pensions, better health care and cost of living adjustments.
Although negotiations were on track for agreement on Tuesday, there has recently been a delay in the agreement, with not all union members satisfied with the outcome, even though the UAW leaders have recommended agreement to the deal. The main objections are coming from Ford and especially from GM. Veteran GM workers are concerned about not receiving as much as the newer employees. It also appears there is some distrust in the UAW leadership after past corruption scandals of former leaders.
According to publication The Detroit News, the overall approval from GM workers is around 54%. Certain plants are very much in favour. However, there are a number of plants, including the Bowling Green Corvette Assembly Plant, that are still voting against the current proposal. A vote was held at the Corvette facility on Tuesday to ratify the proposed GM/UAW agreement, but the final outcome showed that 53% were voting against the agreement.
In order for the agreement to pass, a majority of employees across the whole GM organisation need to vote in favour. Publication Automotive News reports that of the 46,000 UAW workers at GM, there have been 22,150 who have already voted. The current position is that only 52.16% have voted YES, making it likely the result won’t be known until the last minute. The employees at Ford and Stellantis, unlike those at GM, have shown a healthy majority in support of the proposed agreement. This may have something to do with the president of the UAW being a constant critic of the high compensation for GM CEO, Mary Barra.
It is expected the final results of the GM vote will be known by the end of the week. If GM employees decline to approve the proposed agreement, the GM plants may continue to strike. Closure of the Bowling Green Assembly Plant would stop production of new Corvettes which may well delay the start of production of the E-Ray.