General Motors (GM) has announced plans to invest approximately $13 billion in U.S. facilities by April 2028 as part of a recent tentative agreement with the United Auto Workers (UAW). The agreement includes various pay increases, bonuses, and enhanced benefits, along with a $5,000 ratification bonus for UAW members employed by GM.

In addition to the investments already announced by GM, such as $4 billion at Orion Assembly in suburban Detroit and $2 billion in Spring Hill, Tennessee for new electric vehicles, the agreement also includes a $1.25 billion investment for a future electric vehicle plant at Lansing Grand River. These investments aim to support the production of electric vehicles and additional volume in assembly plants, as well as engine and components plants.

The details of the tentative agreement were released after local UAW leaders approved the pact, which still requires ratification by a simple majority of the union’s 46,000 members employed by GM. GM was the last of the “Big Three” automakers to reach a tentative agreement following Ford Motor and Stellantis.

While GM’s U.S. investments under this agreement total $13 billion, the investments announced by the union at Ford and Stellantis are $8.1 billion and $18.9 billion, respectively. However, the details disclosed by the union for GM do not include the previously announced investments in joint-venture battery cell plants in the U.S.

The agreement not only emphasizes job security for UAW members but also represents a significant achievement in terms of wage increases and economic gains. The deal includes 25% pay increases, profit-sharing payments, and other enhanced benefits. The raise will be implemented in phases, with an 11% increase upon ratification, followed by 3% annual increases for three years, and a final 5% increase in September 2027.

Moreover, the agreement addresses wage tiers and aims to reduce disparities by ensuring that workers are paid the same or similar wages as their colleagues at assembly plants. The elimination of wage tiers has been a central goal of the UAW, as President Shawn Fain stated that they made significant progress in this area at GM.

With the successful negotiations with the “Big Three” automakers, the UAW plans to leverage these record contracts to unionize other automakers and secure favorable agreements for workers in the industry. The UAW aims to extend similar benefits to auto workers at Toyota, Honda, Volkswagen, Hyundai, and Tesla, highlighting that these companies, too, are generating substantial profits.

While Ford’s Michigan Assembly Plant has already voted in favor of the tentative agreement, UAW members at Stellantis and GM are expected to vote on the deals in the coming weeks.

FAQs

1. What is the agreement between General Motors and the United Auto Workers?

The agreement between General Motors and the United Auto Workers (UAW) involves a commitment from GM to invest approximately $13 billion in U.S. facilities by April 2028. It also includes various pay increases, bonuses, and enhanced benefits for UAW members employed by GM.

2. What are the planned investments by GM?

GM has already announced investments such as $4 billion at Orion Assembly in suburban Detroit and $2 billion in Spring Hill, Tennessee for new electric vehicles. The agreement also includes a $1.25 billion investment for a future electric vehicle plant at Lansing Grand River.

3. What are the wage increases included in the agreement?

The agreement includes a 25% pay increase for UAW members. This increase will be implemented in phases, starting with an 11% increase upon ratification, followed by 3% annual increases for three years, and a final 5% increase in September 2027.

4. What is the purpose of eliminating wage tiers?

Eliminating wage tiers aims to reduce disparities among workers by ensuring that they are paid the same or similar wages as their colleagues at assembly plants. The UAW has made significant progress in this area during negotiations with GM, with some workers receiving an immediate raise of 89% if the agreement is ratified.

5. What are the next steps for the agreement?

The tentative agreement has been approved by local UAW leaders, but it still requires ratification by a simple majority of the union’s 46,000 members employed by GM. UAW members at GM and Stellantis are expected to vote on the deals in the coming weeks.