UAW and GM’s joint venture reach a tentative deal that gives battery workers a wage hike

The United Auto Workers and Ultium Cells LLC have reached a tentative agreement on wages at the battery cell plant in northeast Ohio that would provide an immediate, across-the-board wage increase and back pay for those who qualify, if the hourly workforce ratifies it.

Ultium Cells is the joint venture owned by General Motors and battery maker LG Energy Solution. It makes battery cells for the EV batteries GM uses in its new EVs powered by the Ultium propulsion system. That includes the GMC Hummer EV, Cadillac Lyriq, Chevrolet Silverado EV and Chevrolet Blazer EV, which started shipping to dealers late last month.

Tech Lead and Process Engineer inspecting a cell as it proceeds through the cell assembly line at Ultium Cells Warren facility in Ohio. Cell assembly is the second phase in the battery cell manufacturing process where materials are assembled and packaged.

In a statement released by Ultium on Thursday evening, it said the deal is still pending a membership ratification vote, which is expected to conclude on Sunday. But, if ratified, then effective Monday, all Ultium hourly employees’ wages will be increased. The average wage increase being about 25%.

There are about 1,150 union members at the plant, the UAW said, adding that the starting wage there is $16.50 an hour. This tentative agreement would push that up to a little more than $20 an hour.

The interim wage increase will be retroactive, so active current hourly employees will receive back pay for every hour worked since Dec. 23, 2022, Ultium Cells spokeswoman Katie Burdette said in a statement to the media. Any current employee who has worked since Dec. 23 can receive payment of $3,000 to $7,000, based on hours worked.

Only the first step

In December, the hourly workforce at Ultium Cells voted to unionize the plant near Lordstown, Ohio, after the union and the company spent months at odds over the organizing process.

“This agreement is a significant and meaningful step as we continue to negotiate collaboratively and in good faith with the UAW to reach a comprehensive contract,” Ultium Ohio Plant Director Kareem Maine said in a statement.

Josh Ayers, UAW Local 1112 chairman, said in a statement that the interim wage increase is only the first step as the union and company continue to work on “a fair and comprehensive contract.”