United Auto Workers-represented employees at the General Motors Co. and LG Energy Solution joint-venture battery plant in northeast Ohio have approved a wage increase agreement, Ultium Cells LLC, the GM-LG company, and the UAW said Sunday.
The interim wage increase for about 1,100 employees was ratified with a 97.6% approval, according to Ultium Cells. The UAW said the agreement was approved 895 to 22.
“UAW members at Ultium are proving that we can raise standards at the electric vehicle facilities coming on line across America,” UAW President Shawn Fain said in a statement. “This agreement is an important step forward, but it’s only the first step. We will keep fighting at Ultium and all EV plants to win the same strong pay and safety standards that generations of autoworkers have won at GM, Ford and Stellantis.”
The UAW and Ultium reached the agreement late last week. It gives an immediate pay increase of more than 20% to all current Ultium Cells hourly employees at the plant located in Warren, Ohio. The agreement comes as the two parties continue to negotiate an inaugural contract for the Ultium workers.
The interim wage increase will be retroactive, with active current hourly employees receiving back pay for every hour worked since Dec. 23, 2022. Any current employees who have worked at the company since Dec. 23 can receive payment of $3,000 to $7,000, based on hours worked, Ultium said.
“This weekend, the UAW Local 1112 brothers and sisters at Ultium Cells have spoken by casting their vote concertedly in favor of this interim wage increase,” said Josh Ayers, chairman at UAW Local 1112 representing Ultium workers, in a statement. “There is still a lot of work ahead in the bargaining process, including a wage package which will not only be life changing for the hourly workforce, but transform our work from ‘just a job’ to a career. Ultium Cells can and should be a highly desirable place to work. I truly believe this is achievable in collaboration with the UAW and Ultium Cells.”
The UAW, in a statement last week, said the “breakthrough agreement” will raise wages by $3 to $4 an hour, adding it will continue to bargain for more wage increases.
Under the agreement, production operators would start at $20 and go up to $21 after six months or 1,000 hours worked, according to a document obtained by The Detroit News.
Ultium has come under fire for what the union calls “high risk and low pay” jobs at the Warren plant. The union in July released a white paper detailing health and safety issues at the plant, noting workers start at $16.50 per hour and could make up to $20 per hour after seven years.
In a Sunday statement, Ultium Ohio Plant Director Kareem Maine said: “Today, our Ultium Cells Ohio team members voted overwhelmingly to ratify the previously announced interim wage agreement. This vote further reinforces that Ultium and the UAW are making progress toward reaching a comprehensive agreement, which will lead to a meaningful contract for our team members.”
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