GM subsidiary workers at several Michigan-based General Motors plants have reportedly ratified a new one-year contract, securing higher pay, health care improvements, and other benefits.
According to a report from The Detroit News, GM Subsystems LLC employees at the GM Orion plant, GM Flint plant, and GM Factory Zero plant approved the new contract with 90 percent of members voting in favor. Meanwhile, voting results from a fourth facility, the GM Lansing Grand River plant, are still forthcoming. GM vehicles produced at these facilities include the Chevy Bolt EV, Chevy Bolt EUV, Chevy Silverado HD, GMC Sierra HD, Cadillac CT4, Cadillac CT5, and Chevy Camaro, among others.
The new labor contract affects roughly 700 GM subsidiary employees, represented by the United Auto Workers (UAW) labor union. As GM Authority covered previously, the UAW has engaged in negotiations with GM regarding contact renewal for GM subsidiary employees since May of 2021. Negotiations stalled late last month, leading to the UAW calling for a strike to take effect on June 30th assuming a deal could not be reached. Later reports indicate that GM and the UAW reached an agreement shortly before the strike deadline was set to take effect.
GM subsystems employees perform several functions of vital importance to GM’s production efforts, including material handling and battery assembly for GM electric vehicles. The contract dispute reportedly arose as the UAW attempted to unionize GM’s battery plants, which are jointly owned by GM and LG Energy Solution.
The new labor contract includes a wealth of benefits for employees, including a wage increase from $15 – $17 per hour, to $18.50 – $22 per hour, a $7,000 ratification bonus, 25 percent total profit sharing, vision and dental benefits, performance bonuses, and a pathway to become a regular GM employee. The new contract will be valid until September of the 2023 calendar year, at which time the GM-UAW national contract is also set to expire. GM subsystem employees are not covered under the GM-UAW national contract.