GM: We Like the Massive Share Repurchase and Dividend Increase Despite Higher Costs From UAW Deal

GM’s roughly 46,000 United Auto Workers members recently ratified a new contract that expires on April 30, 2028. See our Oct. 30 note for key details of the new deal. The union’s vote tracker shows about 54.7% yes votes with production workers voting 53.2% yes and skilled trades 63.8% yes. The vote was closer than we expected, with only four of GM’s 11 U.S. assembly plants approving the deal, and we calculate 78.2% voter participation. The higher dissatisfaction among GM production workers likely came from a combination of UAW President Shawn Fain setting expectations too high around resuming pension and GM-paid retiree healthcare and the union putting economic gains over the deal for the most senior production workers at $68,700, while in progression, temporary workers, and those in other areas such as parts distribution or materials handling have gains ranging between $134,600 and $198,800. These gains exclude overtime and profit sharing.