As extensively covered by GM Authority, General Motors and the United Auto Workers (UAW) labor union have been negotiating labor contracts since July 2023. In the midst of the UAW’s increasing demands, the Detroit-based automaker has been clapping back and claiming that the higher pay raises would harm its ability to make proper business decisions.
According to a report from Reuters, the UAW is seeking a minimum 40-percent pay hike over the course of a four-year contract, including an immediate 20 percent increase upon ratification. The labor union backs up these demands by pointing out that the CEOs at the Big Three approved 40 percent pay raises for themselves over four years.
In response, The General stated that the proposal “would threaten our ability to do what’s right for the long-term benefit of the team. We think it’s important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition.”
It’s worth noting that the UAW did not immediately comment on these claims. Earlier this week, UAW President Shawn Fain pointed out that the current proposals is the “most audacious and ambitious” in decades.
In other UAW-related news, Ultium Cells LLC – the joint venture between General Motors and LG Energy Solution – has claimed that there is not a viable path to include its workers in the national labor agreement. If this were to come to fruition, the workers would likely receive better pay and benefits.
As of the time of this writing, negotiations are currently under way, with the labor union fighting for retiree benefits, cost-of-living adjustments, and unionization of the GM Ultium battery plants, as well as a long list of other items. Notably, the UAW has stated that it isn’t afraid to strike if it doesn’t receive what it perceives as a fair offering.