The United Auto Workers labor union, or UAW, intends to start contract negotiations with GM and the other two companies making up the “Detroit Three” over the next two weeks as the current four-year contract nears its expiration.
UAW negotiators will start talks with The General last of all, according to a recent Reuters report.
Talks with cross-town rival Stellantis – the parent of Ram, Chrysler, Dodge, Jeep, and a dozen other automotive brands – will begin first, on Thursday, July 13th, 2023, per statements by the UAW. Union negotiations with Ford will start the next day, Friday, July 14th, and talks with GM will begin last of all on next Tuesday, July 18th.
The UAW has its sights set on several ambitious negotiating goals, seeking several major changes to the union contract rather than simply looking for renewal of current contractual terms, which are set to expire in September 2023.
According to Reuters, one significant demand is the return of retiree benefits and cost-of-living pay adjustments, which were dropped almost a decade and a half ago during the Great Recession. Another is elimination of the two-tier pay system that sees new workers receive up to 25 percent less pay than longer-term members. A third demand is unionization of GM’s growing number of Ultium battery plants.
The UAW continues to use the militant, aggressive tone adopted by its recently elected president Shawn Fain and other leadership figures. In a mid-June video, the UAW accused the Detroit Three of neglecting their workers while richly rewarding their executives out of the over $250 billion in profits raked in by the automakers during the past 10 years.
The union’s vice president Rich Boyer stated “Big Three executives have lavished themselves with fat salaries while auto workers continue to live paycheck-to-paycheck, and can’t even keep up with inflation.” UAW Secretary-Treasurer Margaret Mock followed up by remarking “we want strong job security guarantees that protect our work, families, and communities.”
The report notes the UAW has also held off on endorsing President Joe Biden’s bid for reelection. The union offered sharp criticism of Biden’s EV policy, with UAW president Fain blasting the government’s “giveaways” to automakers for the switch to electric vehicles.
Fain further noted the Detroit Three are pursuing their battery plant development plans with “no consideration for wages, working conditions, union rights or retirement security.” Outside analysts partly echo some of his criticisms by predicting billions in automaker losses leading to more job and wage cuts, directly caused by the switch to low-volume, costly EVs.
Further EV-related disputes between GM and the UAW recently arose over safety issues at the GM Ultium Cells LLC plant in Ohio. Shawn Fain once again weighed in, remarking “it’s not just the low pay, these jobs are often dangerous” and declaring “it’s time to build an EV industry that puts workers first.”
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Comments
It sounds like the same old BS union demands. Other than the term EV it’s the same BS as they were making in the 60’s when I started working. If they are living pay check to pay check maybe the union should offer some classes in home economics.
That may have bearing on how families maintain their budgets. True. I think the real story is that the UAW is trying to negotiate for better pay and benefits for those employees. I won’t rule out that perhaps classes could be given in family budgeting. That could help but you must agree that everyone needs money. I am 65 and my retirement pensions don’t cover all of my bills. So, I got to work. You can try to manage all of your expenses, but things cost more!
My late Ex., was a lifelong UAW member. My over view was and still is, Too many workers getting skilled worker pay for unskilled work. That’s why, years ago, they went for the two tier system. Too many worth less humans starting out at ridiculous high wages. Many of whom. just pissed their pay away. Most never learned how to manage there new found income. Treat the workers fair, but don’t give them more than they deserve.
What do mean, ” treat the workers fair, but don’t give them more than they deserve “? They deserve more money. CEOs and Executives that sit behind a desk are making six-figure salaries while the production line workers who do the actual work are making peanuts!!!! Equal pay for Equal work!
The problem with this argument is that if you spread all executive pay over the work force it would be pennies per employee per hour. It sounds good but has no impact in reality. This comes from a career in Corporate accounting.
GM bought back 2billion in stock in 2022. That’s 38k per employee when broken down that doesn’t sound like pennies to me
Buying back their stock makes the company stronger and lowers expenses and that benefits all employees.
Stock buybacks are a horrible waste of capital. Executives issuing debt to buy stock is effing pathetic! Besides the fact they should be illegal, it is nothing but a scheme to reward executives and the biggest shareholders (hedge funds) and use up money that could be used for R&D, improving productivity (real profit growth), or invest in human capital. Steve Jobs (IMO the greatest CEO of all time) thought stock buybacks was pissing money down the drain, and he was right!
You are talking about cash flow NOT re-occurring income.
Merica still the same brain washed destroy the middle class ciuntry by giving all the $$$ to the rich and blame the poor. Hope you get some economic education soon.
The UAW needs to remember the past. Do these want the prospect of bankruptcy again? The automakers may be making money and I’ll agree on the executives being overpaid, but they are facing a lot of factory redesigns and building to get EV’s produced.
Also the price of new vehicles is so high now that many families can’t afford a new one. Now should they have job security, yes. Cost of living raises are a reasonable request as is some medical coverage. Retirement benefits are ok but they cost money so if that’s what you want don’t expect as much wage increase.
I guess I can believe some are living paycheck to paycheck but is it truly because of wages or from trying to high on the hog. I don’t know the wages but I’ll bet a lot of people around where we are are living on much less.
I do agree. Thats exactly what I would point out. Production lines should not be shortchanged because of Electronic Vehicle Production. People have to eat, take care of their families, medical bills, and they need a car also. Maybe some persons are living beyond their means, but things aren’t cheap! Prices are steadily rising.
All of the big three companies made money and the stock market for years, not just for 2022. Pennies is not what we are talking about here. I know that was a non-figurative comment. Thats appreciative, no harm no foul. You must agree that CEOs and Executives are making the top salaries. Retirees need COLAs and current employees need pay raises. The Economy does not stop, and the cost of living is not going to decrease. We are heading or rather already in a recession. Mortgages have skyrocketed, medical procedures, medications, gasoline processing and prices are at an all-time high. It is not going to stop; it is getting worse. Even millionaires feel the cost of living. They probably don’t feel it as much, but they are careful. Everyone should be careful with spending anything. We do have to have to eat.
Oh I see supporting the pubs like T would get them the benefits. How easy they forget it was a pub that fired the air traffic controllers and same ones that would not support local unions eaither for those i.e. lush school system benefits. Now I am not necessarily a union supporting folk depending on industry….but the point is made. Not supporing the dem pres yet? Ha who else ya gonna support DeS? Kamala? too funny.
Kirkland cut a deal with the Reagan Administration, not to call a general strike in support of the air traffic controllers. They received a whopping $500 check from the AFL-CIO and were then left to whither and die. So much for Union Brotherhood. Teamsters were crossing the picket lines on day 3 of the strike.
Lane Kirkland cut a deal with the Reagan administration not to call a general strike in support of the air traffic controllers. Instead the striking controllers received a $500 check and were left to whither and die, setting back the labor movement for decades in this country. So much for the Union Brotherhood, Teamsters were crossing their picket lines within 3 days.
Good luck everyone and be fair.
Exactly! The UAW and The Detroit Three should be fair to all employees. True. Keep it fair.
The Detroit companies and the UAW need to craft an contract that will let both survive the upcoming shift to EV production AND the upcoming price war for volume EV sales. They have non-union competition produced in the US from every major foreign company.
Speaking of the “Big Three” all looking to go “All EV” The electric grid can’t handle consumer use now! Besides, most ALL electric power, is generated by some form of fossil fuel. We can’t have only one way before we figure out how this will all work out. Just saying “Lets go all EV” won’t make it so. We are still along way to go. Thinking ahead, if we don’t do this slowly, we will all pay the price…sooner than later.
I agree. A lot of things will and can go wrong with an EV. The batteries for the cars cost extraordinary expensive. The entire electronic circuit module can shut down. We are in the middle of the road with no cellular service, no cell towers. Oh well I guess we start walking and it’s raining.
If GM would bite the bullet and give the old timers what they want in retirement, and raise the profit sharing for everyone and maybe a small raise for everyone, a strike can be avoided. No one wins in a lengthy strike and it effects 10 times the people that are employed with the big 3.
If stellantis is worried about going bankrupt maybe the Ceo of stellantis should cut his salary. 24.8 million dollars 2022. Tell me what did he do to help build any of the parts of the vehicles stellantis sells besides sit in a cozy office? The cheapest vehicle stellantis has starts at 36,000 dollars! Someone make the numbers make sense. Labor cost in making their vehicles is only 3%. It’s clear stellantis doesn’t have any concept of the average working Americans make. When Chrysler was Chrysler they sold vehicles like the neon and stratus that very affordable for the average workers to purchase. Base model of brand new dodge neon was 19,000. The foreign auto manufacturers have had affordable vehicles for awhile now. Stellantis are very greedy and selfish. It’s funny how most people have negative comments about the Uaw workers hourly rate, the same people who built the vehicles and will have broken down bodies from years of making sure that stellantis makes billions, but no one has anything to say about the salary paid to the Ceo of stellantis. As always the rich continues to get richer off the backs of people who have put their all into their jobs. There should be no reason why they can’t hire people full time and pay them more than 18.00 an hour. Stellantis has temporarily workers who have been temporary for over 5 years. They don’t receive any decent benefits, no bonuses and no vacation or paid days off. The 2 tier doesn’t have a pension plan offered to them for after they work 30 years or more have nothing to show for it or to take care of themselves and their families during the golden years.