UAW, Ultium Cells agree on wage increases at Ohio battery plant

Ultium Cells LLC and the United Auto Workers have reached a tentative agreement to give raises of more than 20% to workers at Ultium’s battery plant Warren, Ohio, according to a company statement.

The agreement, which will have to be ratified by the UAW members at Ultium, would become effective Aug. 28. It comes as the two parties continue to negotiate an inaugural contract for the Ultium workers. Ultium is a joint venture between General Motors Co. and LG Energy Solution.

“Providing this wage increase is the right thing to do for our team members, all of whom contribute so much to Ultium Cells’ growth and success,” Ultium said in a statement. “This is just a first step. We continue to bargain in good faith with the UAW to reach a comprehensive contract for our employees, including a final wage scale.”

Ultium said 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.

The UAW said in a statement that the “breakthrough agreement” will raise wages by $3 to $4 an hour, adding it will continue to bargain for more wage increases.

“After months of public pressure and worker organizing, Ultium was forced to take a first step towards economic justice for the workers who are powering GM’s electric vehicle future,” UAW President Shawn Fain said in a statement. “When we fight hard, we can win big, and we aren’t done fighting for standard-setting wages and benefits at Ultium and beyond.”

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.