Around 1,000 GM Workers To Get A 35% Raise After Joining United Auto Workers Union

Approximately 1,000 employees at a General Motors joint venture electric vehicle battery facility in Spring Hill, Tennessee, are set to receive substantial pay increases following their recent unionisation with the United Auto Workers.

GM and LG Energy Solution of Korea, the joint operators of the plant, have agreed to acknowledge the United Auto Workers union after a majority of employees signed cards indicating their desire to join. The union announced in a statement that, although local contract negotiations will take place, worker pay and other details will be determined by the national contract agreed upon last fall.

UAW Victory: GM Workers Secure 35% Raise

According to the contract, the starting pay will jump from $20 per hour to a minimum of $27.72. Furthermore, the minimum production worker pay will gradually increase to $30.88 within three years. This pay increase comes five years after the United Auto Workers union staged a strike, halting GM's factory operations to pressure the company into meeting their demands, which included higher hourly wages, a more equitable share of profits, improved healthcare benefits, and greater job security.

Ultium Cells LLC, the joint venture, confirmed in a statement that the union was recognised after an independently verified process concluded on Tuesday. "We believe this will support the continuity of operations, drive innovation, and enhance world-class manufacturing," the release said.

The unionisation of the battery plant represents a significant step for the UAW as it aims to organise non-union auto plants in the southern United States. In April, workers at a Volkswagen assembly plant in Chattanooga, Tennessee, with approximately 4,300 employees, voted to join the union, and contract negotiations are anticipated to commence this month.

However, the union experienced a setback in May, losing its first organising vote at a Mercedes assembly plant and other facilities near Tuscaloosa, Alabama. Spring Hill marks the second GM joint venture battery plant to join the union and fall under the national contract. Workers at a plant near Warren, Ohio, voted to join the union in 2022.

Contrasting Fortunes: GM Faces Both Union Gains And Layoffs

In stark contrast to the recent union victory, CNBC reported just days ago that GM is laying off more than 1,000 salaried employees globally in its software and services division to streamline the unit's operations.

The layoffs, affecting roughly 600 jobs at GM's tech campus near Detroit, come less than six months after leadership changes in the division, including the departure of former Apple executive Mike Abbott from the automaker due to health reasons in March, after less than a year in the role.

"As we build GM's future, we must simplify for speed and excellence, make bold choices, and prioritise the investments that will have the greatest impact," a GM spokesman said in an emailed statement.

"As a result, we're reducing certain teams within the Software and Services organisation. We are grateful to those who helped establish a strong foundation that positions GM to lead moving forward," the spokesman added.

While GM declined to provide the exact number of layoffs, a source familiar with the matter, who requested anonymity due to the private nature of the information, confirmed that more than 1,000 salaried employees would be laid off, including 600 in Warren, Michigan. Impacted employees received notification on Monday morning.