The inaugural union contract at the Ultium Cells battery plant in Tennessee has been approved by United Auto Workers (UAW) members, marking a significant milestone for nearly 1,000 employees. Ultium Cells, a joint venture between General Motors (GM) and LG Energy Solution, has ratified a contract that enhances workplace conditions and aligns wages with another Ultium plant in Ohio.
The agreement between the UAW and Ultium Cells prioritizes fair work practices, workplace safety, fair pay, and benefits for workers at the Tennessee plant, which is dedicated to producing battery cells for electric vehicles (EVs). The contract includes a one-time £3,000 lump sum payment to each worker and sets a wage progression starting at £26.91 per hour, with annual increases leading to a £35 hourly wage by September 2027.
UAW Region 8 director Tim Smith emphasized the importance of fair wages, healthcare, and safety protections for workers in the EV battery industry, urging companies like Volkswagen to follow suit. The UAW has identified battery plants as critical areas for unionization, especially as automakers transition to electric vehicle production.
Organizing these plants has been a key focus for the UAW, with President Shawn Fain highlighting the significance of unionizing these facilities during negotiations with automakers. Ultium Cells’ decision to recognize the UAW at the Tennessee plant follows a successful vote by workers at the Ohio facility in 2022, leading to a new contract in 2024 with substantial wage increases.
Negotiations are currently underway for a first contract at the Volkswagen plant in Tennessee, where workers voted to unionize in April 2024. As the UAW continues to advocate for its members, securing fair pay, benefits, and workplace protections remains a top priority in the rapidly evolving automotive industry.
