GM expected to invest $13 billion in U.S. plants under new UAW deal

Detroit – General Motors The United Auto Workers union said it plans to invest about $13 billion in U.S. facilities through April 2028 as part of a recent tentative agreement with automakers.

GM has announced planned investments such as a $4 billion investment in Orion Assembly in suburban Detroit and a $2 billion investment in Spring Hill, Tenn., to buy new electric vehicles. Other investments, such as $1.25 billion for a future electric vehicle factory on the Grand River in Lansing, are new investments.

Many of the new investments include hundreds of millions of dollars for assembly plants to support or add additional production, as well as engine and parts plants.

Details of the tentative agreement were released Saturday after local UAW leaders and General Motors approved the agreement, which must still be approved by a simple majority of the automaker’s 46,000 union members.GM is last automaker in Detroit to reach tentative deal Ford and Chrysler parent company star.

GM’s U.S. investments through 4.5 tear test provisions compare to $8.1 billion announced by Ford’s union and $18.9 billion announced by Stellantis’ union, including previously announced investments in Coco, Indiana. US$6.2 billion investment in parts factory in Mozambique.

GM declined to comment on the released details, citing CEO Mary Barra’s statement when the interim deal was initially announced: “GM is pleased to have reached an interim agreement with the United Auto Workers. The agreement reflects the team’s contributions while allowing us to continue investing in our future and providing good jobs in the United States,” she said. “We look forward to everyone getting back to work, delivering great products to our customers and winning as a team.”

The tentative labor agreement announced Monday comes after about six weeks of targeted strikes by unions at General Motors, Strantis and Ford, also known as the “Big Three” automakers. The shutdown began on Sept. 15 after both sides failed to reach an agreement with the automakers before a strike deadline covering the 146,000 UAW members.

“There’s a reason the Big Three and their allies feel like they’ve been sent to the janitor,” UAW Vice President Mike Booth said at a conference. “This contract brings wage increases and wages we’ve never seen before. Economy Profit.” Saturday online live broadcast. “The revenue from this contract is more than four times that of the previous contract.”

Like the UAW’s tentative agreement with Stellantis and Ford, the agreement includes a 25 percent pay increase, bonuses and other enhanced benefits for autoworkers, such as profit-sharing payments and a $5,000 approval bonus.

The 25% pay increase includes an 11% increase upon approval, followed by a 3% increase over the next three years and then a 5% increase in September 2027.

At GM, the union has also made significant progress in reducing the number of workers at different levels who make the same or similar wages as their traditional colleagues at assembly plants. UAW President Shawn Fain said some workers would receive an immediate 89% raise if approved by members.

“One of our core goals in this round of negotiations is to eliminate hierarchy,” Fein said on the broadcast. “While we haven’t won everything, we’ve made tremendous progress at GM. We’ve done more to eliminate pay grades than any of the Big Three.”

Fain confirmed again on Saturday that the new workers included in the agreement include those at GM’s Ultium Cells battery joint venture. Battery workers will receive a raise of $6 to $8 an hour, he said.

Fein reiterated Saturday that the union plans to use record contracts with General Motors, Ford and Stellantis as leverage to influence other automakers to unionize.

“We’re not shy or reticent about our plans: Our goal is to organize the nation’s autoworkers over the next few years,” Fein said. “The Big Three aren’t the only car companies making record profits. Auto workers at Toyota, Honda, Volkswagen, Hyundai and Tesla, they deserve record contracts, too.”

Toyota Automotive Plans to raise wages at U.S. factories were announced earlier this week. The new wage would increase pay for Kentucky’s highest-paid hourly manufacturing workers by about 9 percent to $34.80 an hour, but would still be more than 40 an hour below the UAW’s tentative agreement with the Detroit automakers. dollar maximum salary.

Ford’s UAW members have begun voting on the tentative agreement. Most notably, 82% of workers at Ford’s Michigan assembly plant voted in favor of the deal this week. The plant in suburban Detroit was one of the first to strike, along with other assembly plants such as General Motors and Stellantis.

UAW members along with Stellantis and GM are expected to vote on the deals in the coming weeks.