General Motors (NYSE:GM) is inching closer to ratifying the new labor contract made with the United Auto Workers (UAW) union. The deadline for the votes is set for today, November 16, at 4 p.m. EST. On Wednesday, 60.8% of union workers at GM’s largest factory in Arlington, Texas, voted in favor of the tentative contract. By far, roughly 54.3% of GM members have voted in favor of the deal. The fate of the results could drastically impact GM’s stock price as shareholders await an end to the months-long ordeal.
Meanwhile, union workers at the Spring Hill, Tennessee; Flint, Michigan; suburban Detroit plants; and the Lansing Delta assembly plant have rejected the new four-and-a-half-year agreement. The figures do not signify a majority by a great margin, but it is indeed a reversal from Tuesday’s majority of negative votes.
As of date, 30,700 of the 47,000 UAW workers at GM have cast their votes. GM is considering the Texas plant vote as a win since ballot casting at most of its plants is over, with final results expected soon. Although a few unionized workers are not satisfied with the terms of the tentative deal, UAW President Shawn Fain has maintained that they have tried to squeeze out every possible dollar through the targeted strike approach.
Is GM a Good Stock to Buy Today?
On TipRanks, GM stock has a Moderate Buy consensus rating based on 11 Buys, five Holds, and one Sell rating. Also, the average General Motors price forecast of $44.71 implies 58.9% upside potential from current levels. Year-to-date, GM stock has lost 16.2%.
