It appears that General Motors' union workers are likely to reject the proposed historic deal by the United Auto Workers (UAW). The outcome of the vote is expected to be in opposition to the four-year tentative agreement, which would have provided the workers with wage increases, bonuses, and a pathway to permanent employment for temporary workers. This development could potentially lead to a strike by the union workers, resulting in significant disruptions to the operations of the automaker. The situation is being closely monitored by industry experts and stakeholders, who are keen to see how it unfolds in the coming days.
Voting Results
United Auto Workers (UAW) members at General Motors (GM) are on the verge of voting down a tentative union deal that ended a six-week labor strike against the automaker. The majority of UAW members at several major GM plants have voted against the pact, representing 40% of GM's 46,000 union employees. The voting results at smaller GM facilities, as well as an SUV plant in Arlington, Texas, are yet to be finalized.
Possible Outcomes
If the deal is rejected, it would prolong a historically contentious round of negotiations between the UAW and Detroit automakers. Similar tentative agreements at Ford Motor and Stellantis have received higher voter approvals among those automakers' unionized workforces.
As of Wednesday morning, the UAW had not updated its vote tracker for GM to reflect several plants that voted against the deal. As of midday Tuesday, before majorities of workers at GM's Corvette plant in Kentucky, a Buick and Chevrolet crossover plant in Michigan, and truck plants in Missouri and Indiana voted against the pact, the agreement had a 52% approval.
It has become more common in recent years for UAW members to reject tentative agreements. Workers at Fiat Chrysler, now Stellantis, voted down a deal during talks in 2015, and Mack Trucks rejected a contract proposal last month.
If the GM deal is voted down, UAW President Shawn Fain and other union leaders will need to decide how to proceed and secure a better deal for GM's union workers. They could reinitiate strikes against the automaker, attempt to reopen negotiations, or both.
All options are essentially back on the table for the union and automaker. The company could agree to reopen talks or it could follow what Mack Trucks has recently done and submit the prior offer with little to no changes as what's known as a "last best and final offer" — likely sending it back for members to vote on.
The UAW reached tentative deals with each of the automakers individually, so each is voted on separately. They are not contingent on one another to be ratified.
UAW's Expectations
The record deal at GM, like those at Ford and Stellantis, included 25% wage increases, restoration of cost-of-living adjustments and other benefits. However, UAW members, especially veteran workers, have voiced disapproval for the deal, citing inflated expectations created by Fain, who called for and ultimately failed to secure a 32-hour workweek and better retirement benefits.
Comparison with Other Automakers
GM has the highest number of traditional workers on a percentage basis, followed by Ford and then Stellantis. Stellantis also leans more heavily on temporary workers, who will largely be converted to full-time employees and become eligible for top wages by the end of the deals.
Summary
A rejection at GM would be a setback for Fain. Although he has said union members have the final say on contracts, he and other union leaders have praised the historic deal, saying they bargained for every penny out of the automakers.
Fain touted the union contracts during events this past week with President Joe Biden and during a U.S. Senate committee hearing as voting continued. The future of the tentative agreement remains uncertain as more voting results are yet to be finalized.
(This article is sourced from cnbc.com and curated by Thetransporteronline24)
