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

On Wednesday, the 600 subsystem employees ratified the contract with a 96% “yes” vote. In it, they will get a 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 was overwhelmingly passed because it provides salaries and benefits,” UAW President Ray Curry said.

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

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

• flint assemblagerepresented by UAW Local 598. GM builds its best-selling and most profitable Chevrolet Silverado and GMC Sierra pickup trucks there.
• Lansing Grand River Assemblyrepresented by Local 652 where GM manufactures the Cadillac CT4, Cadillac CT4-V, Cadillac CT5, Cadillac CT5-V and Chevrolet Camaro.
• Factory Zero in Detroit and Hamtramck, represented by Local 22. GM is manufacturing the 2022 GMC Hummer EV pickup there and will start on the Hummer SUV.
• Assembly of Orion in Orion Township, represented by Local 5960, which manufactures the Chevrolet Bolt EV and Bolt EUV and will build the 2024 Silverado EV.

Subsystem employees have a different contract than the 48,000 hourly workers at GM in the United States who went on strike in 2019.

But a strike by subsystem workers could have halted production of GM’s most profitable vehicles in hours, as workers sort through all the parts that come into the factories. Then they deliver those parts to the assembly line to keep production going.

But about 15 minutes before the 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’s 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 per hour and after about eight months could work up to $22 or $24 per hour depending on work. Team leader jobs start at $19.50 and can now reach $23 to $25 per hour.

The contract also stipulated that from May 15, 2023, eligible employees would receive a lump sum payment of 6% performance bonus based on qualified earnings. Another gain was an increase in the pension contribution from 4% to 5%.

Among many other benefits of the contract, GM has agreed to consider certain qualified subsystem employees who apply for a GM production position ahead of outside applicants.

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Contact Jamie L. LaReau at [email protected]. Follow her on Twitter @jlareauan. Learn more about General Motors and subscribe to our automotive newsletter. Become a subscriber.