United Auto Workers Ratify General Motors Contract, Poised To End Prolonged Dispute; Ford And Stellantis Votes Underway

Thousands of United Auto Workers (UAW) members at General Motors Co GM are wrapping up voting on a tentative contract agreement pivotal in ending a prolonged labor dispute with Detroit's Big Three automakers. 

General Motors' tentative labor deal with the UAW union has clinched ratification, making its workers the first of those at the Detroit Three automakers to approve the agreement, Reuters noted.

Attention now shifts to ongoing voting at Ford Motor Company F and Chrysler parent Stellantis NV STLA, where current margins in favor of the deal suggest the agreement will be approved comfortably, the report added.

Doubts emerged regarding the deal's ratification on Wednesday morning when seven out of GM's 11 U.S. assembly plants initially rejected the agreement. However, a significant turnaround occurred in the voting outcomes, particularly at an SUV plant in Texas, providing the deal with a crucial lifeline.

As per the UAW's voting tracker, approximately 54.7% of nearly 36,000 autoworkers at GM who participated in the vote supported the deal, CNBC reported. The total tally stood at 19,683 votes in favor compared to 16,275 against, resulting in a margin of 3,409 votes in favor of the agreement.

The UAW hasn't officially confirmed the ratification yet. However, if approved, it would signify the inaugural acceptance of a contract extending until April 2028 with one of the Detroit Three automakers. Voting procedures at Ford and Stellantis are currently ongoing.

If approved by the 146,000 union members, the three contracts would notably boost autoworkers' pay, offering substantial wage increases and cost-of-living adjustments.

Voting has progressed at Ford, reportedly showing significant support, with around 67% of workers in favor. At Stellantis, voting continues with a 66% approval recorded thus far.

Price Action: GM shares are down 1.42% at $27.74 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Via UAW