Economy

U.A.W. Reaches Accord on Pay and Safety at E.V. Battery Plant

The United Automobile Workers union on Monday announced a tentative contract agreement at an Ohio factory making batteries for electric vehicles, a step that it called a milestone in enhancing pay and safety in the E.V. supply chain.

The accord covers 1,600 workers at a Lordstown plant operated by Ultium Cells, a joint venture between General Motors and a South Korean partner, LG Energy Solution. It produces batteries for G.M. electric vehicles.

The workers had not been unionized when the plant opened in 2022, but they were brought into the U.A.W. under the terms of the national contract the union negotiated with G.M. last fall. This new contract, subject to ratification by the plant’s workers, defines wages and working conditions specific to that location.

Shawn Fain, the U.A.W. president, said in a letter to union members that the accord was “a game changer for the electric vehicle battery industry.”

G.M. said in a statement that it was pleased with the agreement.

The union said it planned to use the Ultium Cells contract as a template as it negotiated local agreements at other battery plants that G.M. and its Detroit rivals are building. G.M. started production this year at a battery plant in Spring Hill, Tenn., and has another under construction in Lansing, Mich.

Ford Motor plans two battery plants in Kentucky, one in Tennessee and one in Michigan. Stellantis, the maker of Chrysler, Jeep, Dodge, and Ram vehicles, plans two battery plants in Indiana. Aside from one Ford location, those plants involve joint ventures that were brought under the U.A.W. umbrella under the national contracts the union signed with Ford and Stellantis last fall.

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