In a surprising turn of events, both Ford and General Motors (GM) have encountered slight hiccups with UAW member votes on their respective tentative contracts. However, despite the setbacks, the automakers and the union remain cautiously optimistic that the ratifications will eventually be secured.

At Ford, the UAW announced that members at the Kentucky Truck Plant and Louisville Assembly Plant, where Super Duty trucks and full-size SUVs are assembled, voted against the tentative agreement by 54.5% and 50.4% "no" votes, respectively. Nevertheless, skilled workers at both plants overwhelmingly approved of the deal, with 65.8% and 76.7% voting in favor.

These were the first UAW chapters to reject the deal, introducing some uncertainty into the ratification process. However, the UAW has reported that 27 other chapters have already approved the agreement, with several chapters yet to cast their votes.

On the GM side, the UAW posted on Facebook that Local 598, representing GM's Flint Truck assembly plant, voted 51.8% against the tentative deal. This is a cause for concern, as the Flint Assembly plant employs 4,746 UAW workers and plays a crucial role in assembling trucks, including the popular Chevrolet Silverado HD pickup.

Labor expert Marick Masters, a business professor at Wayne State University's Mike Ilitch School of Business, has cautioned that the situation at GM poses a more significant threat to the ratification process compared to Ford. He emphasized the complexity of the decisions the union will have to make if the contract is rejected at one company, including the possibility of calling for a strike and determining how to maintain pattern agreements.

Following the news of the vote, GM shares experienced a dip. However, according to the UAW's GM vote tracker, 58% of UAW members working at GM plants have thus far approved the tentative deal.

On the other hand, the numbers look more favorable for Ford, with 65.3% of Ford UAW workers approving the agreement, while 34.7% have voted against it. It is important to note that not all plants on both the Ford and GM sides have completed their voting process.

A source familiar with the matter stated that a tentative contract is ratified if the majority of hourly workers, including production and skilled trades, vote in favor of the agreement. Despite the concerns raised by investors regarding potential cost disadvantages for the automakers compared to non-union counterparts, the effects of the UAW's collective bargaining efforts are now impacting other non-union automakers as well.

In response to the UAW's efforts, Hyundai has announced a wage strategy that will lead to a 25% increase in wages for its Georgia assembly workers by 2028, starting in January 2024. Honda also recently declared an 11% wage increase for its factory workers in the US, while Toyota implemented a 9% wage hike for its hourly and skilled workers a couple of weeks ago.

As the UAW member votes continue and the fate of the tentative contracts hangs in the balance, both Ford and GM are closely monitoring the situation and working towards a resolution that will benefit all parties involved.