Latest UAW local votes suggest GM deal will likely pass

United Auto Workers union members at General Motors appear poised to approve a new four-year contract with the company.

Workers at two union locals at a huge factory in Lordstown, Ohio, east of Cleveland, and at an SUV assembly plant near Lansing, Michigan, voted overwhelmingly for the deal on Friday.

Glenn Johnson, president of one of two locals at the sprawling Lordstown complex that makes the Chevrolet Cruze, said 72 per cent of 3,000 workers at the assembly plant voted yes. The contract passed by an 1,100-vote margin, and Johnson said he's optimistic that's enough to win approval of the national contract.

In addition, 65 per cent of 1,400 workers at an adjacent parts stamping plant also voted in favor, said local President Robert Morales.

Also Friday, the contract passed with 53 per cent in favor at a factory with about 3,500 workers outside of Lansing, Michigan, that makes the Chevrolet Traverse and other SUVs, according to the union local's website.

Voting had been fairly close earlier in the week. Final totals are expected on Saturday. The union will then begin bargaining in earnest with Ford.

Johnson said 90 per cent of the workers at his local cast ballots. At the stamping plant, 87 per cent voted.

If approved, the four-year contract would cover 52,600 GM factory workers.

Like a previous contract ratified by Fiat Chrysler workers, GM's agreement would eliminate a two-tier wage system over eight years. GM currently pays recent hires around $15.78 US per hour. Under the new agreement, workers with four or more years of experience will make the top $29 US hourly wage within four years; workers with less experience would make between $22.50 and $28 US in four years and top wages in eight years.

UAW President Dennis Williams had promised and won richer benefits from GM, which is a bigger and wealthier company than FCA. GM reported last month that it earned $1.36 billion US in the third quarter.

Williams said lower-tier workers who make up 20 per cent of GM's hourly workforce will now be eligible for traditional health care benefits. Both tiers of workers would get an $8,000US signing bonus if they ratify the contract, higher than the $3,000 and $4,000 bonuses offered at FCA. And the profit-sharing formula in GM's proposed agreement promises $1,000 per $1 billionof GM's North American profits. FCA is giving workers $800 based on percentage gains in its North American margins.

GM's proposed contract also offers $60,000 US for up to 4,000 eligible employees who agree to retire next spring.