(Reuters) -The United Auto Workers (UAW) union said Monday that 64% of workers at the Detroit Three automakers voted to ratify new contracts.
The votes lock in the UAW’s tentative agreements with the automakers through April 2028, which include a 25% increase in base wages and will cumulatively raise the top wage by 33%, compounded with estimated cost-of-living adjustments to over $42 an hour.
The ratification is a relief for the automakers after the strike halted production at various plants across the U.S. A rejection could have led to new strikes and pressure from UAW leaders for more costly contracts.
Despite the opposition from workers at some major facilities, UAW members voted to ratify the contract by a near two-third margin.
Votes in favor of the agreement from workers at some parts and components operations who stand to get substantial raises as they move to higher pay classifications outweighed votes against the contract from some veteran workers.
“After years of cutbacks, months of our Stand Up campaign, and weeks on the picket line, we have turned the tide for the American autoworker,” UAW President Shawn Fain said in a statement on Monday.
Automakers, looking to trim costs as they make the shift to electric vehicles, face higher hourly labor costs.
Ford has estimated the new contract will add $850 to $900 in labor costs per vehicle.
“Thankfully, we are on track to reach full production schedules in the coming days at our assembly plants in Michigan, Kentucky and Illinois that were affected during the strike,” Ford CEO Jim Farley said in a statement on Monday.
About 55% of votes cast by GM members were in favor of the new deal, while about 69% of Ford members and 68% of Stellantis workers who voted supported the agreement, according to a UAW vote tracker.
Chrysler-parent Stellantis and GM did not immediately respond to Reuters requests for comment.
(Reporting by David Shepardson and Shivansh Tiwary; Editing by Chizu Nomiyama and Sriraj Kalluvila)
