According to Bloomberg, sources familiar with the matter revealed that Ultium LLC, a joint venture between General Motors and LG Energy Solution, is in talks to raise wages for workers at its Ohio battery factory.
The insiders mentioned that the company's management and the United Auto Workers (UAW) union are negotiating a labor agreement for the factory, and an agreement is nearing completion. During the negotiation period for the factory's first contract, workers will receive a temporary pay raise to tide them over. This agreement would increase the starting wage from $15.5 per hour to over $20 and back-pay will be provided for lifetime employees.
Regarding the report, a spokesperson for Ultium declined to comment.
In December of last year, workers at the factory voted to join the union. This battery plant supplies batteries for electric vehicles under General Motors, including the Cadillac Lyriq and the Hummer electric pickup. Compensation has been one of the biggest issues facing the battery plant, with wages for Ultium workers being only half of the highest wages at General Motors assembly plants.
Consequently, UAW's newly appointed president, Shawn Fain, has taken Ultium as a focal point in the contract negotiations with Detroit automakers. Fain has indicated that, as contract talks heat up, raising the wages at the battery plant will be a top priority. In a recent interview, Fain mentioned that with the current wage levels, there's "a lot of turnover. Some people tried their best to stick it out, but they later told our negotiation team they couldn't wait any longer."
Sources revealed that if both parties finalize the wage increase plan, the new agreement might provide a second pay raise for the factory workers this fall.
