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The Street
The Street
James Ochoa

The landmark agreement between the UAW auto union and GM is facing a major hurdle

The United Auto Workers, led by Shawn Fain, have landed landmark agreements with the big three Detroit automakers that have ended their strike.

However, such agreements must be approved by the union membership before they are put into place and implemented. 

Related: A key Volkswagen executive lays out a game plan to beat Tesla

According to a report by Reuters, UAW members who are General Motors GM factory workers at the Flint assembly plant in Michigan have narrowly voted against a proposed contract with the manufacturer.

A Facebook post on Thursday evening by the UAW Local 598 chapter said that its members voted against the deal by a narrow 51.8%.

Workers at other plants are expected to vote on the same agreement within the next few weeks. 

The Flint assembly plant assembles the popular Chevrolet Silverado pickup truck, a profitable product that has been a sales leader for GM.

A Chevrolet Silverado pace truck drives through turn seven on a parade lap before the NTT IndyCar Series GMR Grand Prix on May 13 at Indianapolis Motor Speedway Road Course in Indianapolis. (Photo by Michael Allio/Icon Sportswire via Getty Images)

Icon Sportswire/Getty Images

The plant's vote comes after the Big Three automakers and the UAW reached tentative deals over the last few weeks to end a costly strike following marathon negotiations.

The agreement with GM, which covers 46,000 workers at the Detroit auto giant, grants a 25% increase in starting wage through April 2028 and will continually increase the top wage by 33% to over $42 an hour, along with cost-of-living adjustments (COLA).

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Electric cars and trucks have been a primary focus for Detroit's car manufacturers, as it tries to dethrone the current market leader Tesla TSLA. Amidst the strike, General Motors scaled back its electric car manufacturing expansion by postponing the opening of a $4 billion electric truck plant in Michigan.

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