GM subsystem workers at 4 Michigan plants ratify a new contract

UAW members at four Michigan plants have a new national contract with General Motors’ Subsystems Manufacturing LLC. 

On Wednesday the 600 subsystems employees ratified the contract by a 96% “yes” vote. In it, they will get a pay raise, a $7,000 ratification bonus and other benefits such as new dental and vision coverage as well as a new profit sharing plan. 

“This contract passed overwhelmingly because it delivers on wages and benefits,” says UAW President Ray Curry.  

GM spokesman David Barnas said the automaker is “pleased” with the ratification and looks forward “to working together to support our customers.”

Just weeks ago, the union was close to striking GM over the contract, which had expired 14 months ago for the workers at the following plants:

• Flint Assembly, represented by UAW Local 598. GM builds its top-selling and profitable Chevrolet Silverado and GMC Sierra heavy-duty pickups there.
• Lansing Grand River Assembly, represented by Local 652 where GM builds Cadillac CT4, Cadillac CT4-V, Cadillac CT5, Cadillac CT5-V and Chevrolet Camaro.
• Factory Zero in Detroit and Hamtramck, represented by Local 22. GM makes the 2022 GMC Hummer EV pickup there and will start on the Hummer SUV.
• Orion Assembly in Orion Township, represented by Local 5960, which makes the Chevrolet Bolt EV and Bolt EUV and will build the 2024 Silverado EV. 

The subsystems employees have a different contract than that of the 48,000 GM hourly workers in the U.S. that went on strike in 2019.

But a strike by subsystems workers could have brought production of GM’s most profitable vehicles to a standstill within hours because the workers sort all the parts that come into the plants. Then they deliver those parts to the assembly line to keep production humming. 

But about 15 minutes before a strike deadline, GM and the UAW reached a tentative agreement for a new contract.

UAW Vice President for the GM Department Terry Dittes said: “We started with solidarity and that is how we crossed the finish line — united as one.”

The new contract expires in September 2023. Under it,  a new hire would start at $18.50 an hour and after about eight months could work up to $22 or $24 an hour depending on the job. The team leader jobs start at $19.50 and now can rise to $23 to $25 an hour.