General Motors made a significant announcement on March 4, 2020, unveiling its new modular platform and battery system called Ultium at its Tech Center campus in Warren, Michigan. The event was captured in a photo by Steve Fecht for General Motors.
In a positive development, General Motors’ Ultium Cells has agreed to raise worker pay at its battery plant in Ohio by an average of 25%. This agreement was reached between the company and the United Auto Workers union. Ultium, a joint venture with LG Energy Solution, is crucial for General Motors to meet the growing demand for batteries in its expanding fleet of electric vehicles. This deal is particularly significant as it marks the first major organized battery plant in the United States.
Prior to this agreement, the UAW and Ultium had been engaged in labor talks for approximately 1,100 workers at the plant. The union had argued that battery workers should receive the same wages as their counterparts who assemble engines and cars. Currently, Ultium workers earn between approximately $20 and $25 per hour for production roles, and $25 to $34.60 per hour for maintenance positions. With the wage increases, their pay will rise by $3 to $4 per hour. However, their salaries will still be lower than the more than $32 per hour earned by traditional UAW assembly workers at Detroit automakers.
It is important to note that the tentative agreement only addresses worker pay and does not cover other aspects. The deal must be ratified by the workers. If approved, the workers will receive retroactive pay increases ranging from $3,000 to $7,000.
Josh Ayers, the chairman of UAW Local 1112, expressed that while the negotiation for a comprehensive agreement is ongoing, the committee continues to work on issues such as working conditions, health and safety, seniority rights, and future wage increases.
This agreement is separate from the national negotiations between the UAW and GM, Ford Motor, and Stellantis, which involve around 150,000 workers.
Turning to the Ultium plant in Ohio, it commenced battery cell production in Warren in August 2022. Serving as a joint venture between GM and LG Energy Solution, this plant is the first of at least four battery facilities for joint ventures with GM in the United States. These plants are expected to generate employment for thousands of workers in the coming years. Other automakers, including Ford and Stellantis, have also announced plans for similar plants, which would require separate organization by the union.
Kareem Maine, the director of Ultium Ohio plant, emphasized the significance of the agreement, stating that it is an important step towards a comprehensive contract and highlights the value placed on their workforce.
The UAW’s membership ratification vote is expected to conclude by August 27. If the agreement is ratified, the interim wage increase will be retroactive, and hourly employees will receive back pay for every hour worked since December 23. Qualified employees who have worked since then will have the opportunity to receive a one-time payment ranging from $3,000 to $7,000 based on their hours worked.
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