Workers at General Motors’ Flint assembly plant in Michigan have narrowly rejected a proposed contract with the automaker, according to UAW Local 598. In a Facebook post on Thursday, the local chapter announced that 51.8% of votes cast were against the deal.
This vote is part of the ongoing process where union workers are voting on contracts offered by Chrysler-owner Stellantis, General Motors, and Ford Motor. These votes come after the first coordinated strike against Detroit’s Big Three automakers.
The Flint assembly plant, known for manufacturing the Silverado heavy-duty pickup truck, saw its workers reject the proposed contract. This decision follows the recent tentative agreements reached between the Detroit Three automakers and the UAW, bringing an end to a costly strike that involved marathon negotiations.
The new agreement, which applies to 46,000 workers at GM, includes a 25% increase in the base wage until April 2028. Additionally, the top wage will be raised by 33% through estimated cost-of-living adjustments, reaching over $42 an hour.
Automakers have been facing challenges in reducing costs and catching up with market leader Tesla in the production of electric vehicles (EVs). However, the lower profit margins associated with EVs have slowed down their transition to this market. As a result, GM had to withdraw its full-year profit forecast in October and postpone the construction of a $4 billion electric truck plant in Michigan.
With this rejected contract, both General Motors and the UAW will need to reassess their positions and potentially return to the negotiating table. The outcome of future discussions will have significant implications for the workers and the company.
(Reporting by Nathan Gomes and Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)
