In a groundbreaking development, the United Auto Workers (UAW) union has revealed that General Motors (GM) plans to invest approximately $13 billion in U.S. facilities by April 2028 as part of a recent tentative agreement between the automaker and the union. The announcement follows weeks of targeted strikes against GM, Ford, and Stellantis, known as the “Big Three” automakers.
Under the tentative agreement, GM’s investments are set to cover a range of initiatives, including new electric vehicle plants and enhancements to existing assembly plants. Notable investments include $4 billion at Orion Assembly in suburban Detroit, $2 billion in Spring Hill, Tennessee, for new electric vehicles, and $1.25 billion for a future electric vehicle plant at Lansing Grand River.
The agreement, which still requires ratification by a majority of the union’s 46,000 members at GM, includes significant economic gains for autoworkers. UAW Vice President Mike Booth highlighted the unprecedented wage increases, bonuses, and enhanced benefits included in the deal. Autoworkers are set to receive a 25% pay increase, with an immediate 11% bump upon ratification, followed by a 3% increase in the next three years and a 5% increase in September 2027. In addition, the agreement addresses the reduction of different tiers of workers, aiming to establish equitable pay levels across the workforce.
Furthermore, GM’s investment plans extend to workers at its Ultium Cells joint venture for battery cells. These employees will receive raises of between $6 and $8 an hour, enhancing their compensation packages.
UAW President Shawn Fain emphasised the union’s commitment to using these record contracts with GM, Ford, and Stellantis as leverage to organise autoworkers across various automakers, including Toyota, Honda, Volkswagen, Hyundai, and Tesla. Fain reiterated the union’s goal to ensure that all auto workers receive fair and competitive contracts, reflecting the booming profitability of the industry.
As part of this transformative agreement, GM’s investment in U.S. facilities not only promises economic growth and job security for workers but also underscores the industry’s dedication to innovation and sustainability in the evolving landscape of the automotive sector. The ratification process is now underway, marking a pivotal moment for the future of the American auto industry.