UAW members are voting against the tentative deal with General Motors

By:
on Nov 15, 2023
Updated: Jun 21, 2024
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  • UAW members appear close to rejecting the General Motors deal.
  • Strike against GM may resume if the tentative deal is indeed voted down.
  • General Motors stock is currently down close to 40% versus its YTD high.

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Members of the United Auto Workers appear close to rejecting a tentative deal that General Motors Co (NYSE: GM) reached with the union on October 30th.

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Here’s what we know so far

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More than 18,000 or 40% of the union workers at GM at a bunch of its major facilities have voted against the said agreement.

Represented employees of the automaker at a number of its smaller factories and assembly plants, however, have extended support for the tentative deal as well.

Neither UAW nor General Motors have so far commented on the news on Wednesday.

Last month, the legacy car manufacturer reported market-beating financial results for its third quarter but removed future guidance citing the UAW strike. At writing, the automotive stock is down close to 40% versus its year-to-date high.

What will happen if UAW rejects GM deal?

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Note that the outcome of voting at the Arlington factory that makes SUVs for General Motors is yet to be revealed. Voting results at some of the smaller facilities are pending as well.

If the union members do indeed reject the record deal, the United Auto Workers may reinstate strike against GM and attempt to resume negotiations for an even better proposal.  Shawn Fain – the President of UAW did, however, tout the tentative deals at a Senate committee hearing this week.

It is worth mentioning here that similar preliminary agreements that were recently put forth by Stellantis and Ford Motor as well have so far received stronger support from their unionised workforce.

Wall Street currently has a consensus “overweight” rating on shares of General Motors Co.

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