Members of the United Auto Workers (UAW) union have voted in favour of a new collective agreement with General Motors (GM).
Unionized workers for General Motors have become the first to ratify a new labour agreement, ending a fractious contract negotiation process that led to six-weeks of targeted strikes at the production facilities of the Big Three Detroit-based automakers.
Voting among UAW members is ongoing at Ford (F) and Chrysler parent company Stellantis (STLA), where expectations are that new contracts will also be approved.
The UAW was able to secure record pay increases for its members after years of stagnant wages and concessions following the 2008-09 financial crisis.
The UAW membership voted 55% in favour of the new collective agreement with GM, with nearly 36,000 workers having cast votes.
The new agreement between the UAW and General Motors runs through April 2028 and provides workers with a 25% increase in base wages.
The new collective agreement cumulatively raises the top wage of a UAW worker at GM by 33% to $42 U.S. an hour.
Currently, about 67% of Ford workers who have voted in favour of the new labour deal, and about 66% of Stellantis workers have voted in favour of the new labour pact.
In October, General Motors pulled its full-year profit forecast due to the strike and postponed construction of a $4 billion U.S. electric truck plant in Michigan because of the labour unrest.
The stock of General Motors has declined nearly 30% over the past 12 months to trade at $27.48 U.S. per share.