General Motors deal with the UAW has been ratified: find out more

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on Nov 16, 2023
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  • Smaller facilities helped GM secure approval for the UAW deal.
  • Two of the automaker's plants are yet to finalise voting results.
  • General Motors stock is down nearly 40% versus its YTD high.

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A majority of the represented staff at General Motors Co (NYSE: GM) has ratified its deal with the United Auto Workers. Shares of the car company are still in the red at writing.

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Smaller facilities helped GM win approval

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The automaker had inked a record tentative agreement with the union in late October – and yet the path forward wasn’t an easy one for it.

In fact, if it wasn’t for strong support from workers at its smaller facilities, the deal would have actually failed to receive approval since GM faced outright rejection at a bunch of its larger assembly plants.

Votes in favour of the deal at a Texas-based plant that primarily makes SUVs for General Motors, in particular, was central to moving the needle in favour of the car manufacturer.

Last month, General Motors reported upbeat results for its third financial quarter but withdrew future guidance citing uncertainty related to the UAW strike.

Two GM plants are yet to announce results

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Of 34,700 unionised workers at General Motors who voted, about 54% did so in favour of the deal.

Two of the automaker’s smaller factories are yet to finalise voting results. However, the outcome at these two plants is insignificant as they represent roughly 1,400 workers in total while support for the agreement is already leading with about 2,500 more votes.

Nonetheless, GM and United Auto Workers refrained from commenting until the results at all factories have been finalised.

The automotive stock that Wall Street currently rates at “overweight” is down close to 40% versus its year-to-date high at writing.

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