UAW Reportedly Lowering Worker Salary Raise Demands
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The United Auto Workers labor union, better known as the UAW, has reportedly revised its demands in ongoing contract negotiations with the Big Three Detroit autoworkers, including GM, Ford, and Stellantis. The new UAW demands include a lower increase to worker salary than was initially put forward. The current auto labor contracts are set to expire this week.
According to a recent report from Automotive News, which cites anonymous sources familiar with the matter, the UAW counteroffer includes a pay raise to the mid-30 percent range over the course of the next four years, with one source indicating a demand as low as 36 percent. The UAW was previously demanding a rise of more than 40 percent, including a 20-percent increase upon ratification of the new contract, and a 5-percent annual increase per year in the four years that followed, compounding to a 46-percent increase by 2027.
The recent UAW counteroffer follows a prickly response to an initial round of proposals from automakers last week. As GM Authority covered previously, GM published the latest proposal to its website detailing the ongoing UAW contract negotiations, highlighting a 16-percent increase in wages, additional paid time off, ratification bonuses, and other benefits. The proposal was accompanied by a video presented by GM Executive Vide President, Global Manufacturing, Gerald Johnson, and GM President Mark Reuss.
In response, UAW President Shawn Fain published a statement to the UAW website, calling the proposal an insult.
“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” Fain’s statement reads.
The UAW filed an unfair labor practice charge against GM late last month, claiming that GM was not negotiating in good faith and was employing delay tactics.
The current UAW labor contracts are set to expire at 11:59 p.m., September 14th. UAW members have voted in favor of strike authorization.
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They will take what they are given at the end. GM will pay but nowhere close to what uaw wants. at the end, shooting for the stars but settling so far apart will be a win against uaw who will be shown as unable to demand cripple the corporations.
no matter what the consumer loses
A 36% raise by the end of the next four year is a pretty decent deal for the automakers given the cumulative inflation of 25% of the past four years, and assuming 4% inflation this year, trending down to 3% for each of the next three years (optimistic), that’s pretty much in line with inflation, past and expected, between 2019-2028.
Anyways good luck, hoping for no work stoppages, the economy doesn’t need any more headwinds.
odd that you mention work stoppages because a simple common suspension part that is tear and wear is unobtanium for a GM of mine. dealer ordered but was told a few days later there is no ETA from gm/supplier. parts person was more confused than i was how that was even possible…. i found it in stock at another dealer however.
tbh we have been living in a strike environment for a while now. doubt an actual strike will change much..
If a union demanded a 46% pay raise, and my company already built a lot of its parts in Mexico. I would tell the Union sure, with a nice smile on my face. Also within two weeks of that moment I would push to start the work of three or four new pads in Mexico, for new car manufacturing factories.
A 46% pay raise? Get the hell out of here.
Move it to Mexico. When I look at the tag under the hood and it reads Hecho en Mexico, that is a no go. I already bought a Challenger with a Hemi (hecho en Mexico) it lost a lifter @6,300mi. Needed new brakes at 12k and we babied that car. No thanks.
5’6 Haha, that is funny you think where it was built matters in the reliability. Mexico has proven time and time again it builds as good if not better vehicles than what is built in the US.
12k and it needs new brakes? That car either A, wasn’t babied (it was a challenger with a Hemi, it should be bought and driven hard) or B, you don’t know how to drive and ride the brakes.
That’s not much to ask for. About 3 other companies got it and a few others in the midd 30s. Sounds to me like you’re hating.
Capitalism will win out in the end. The union will eventually settle for a decent wage and benefits. The car companies will continue to make money and the world will keep turning.
Nothing says like capitalism like a federal body being able to squeeze private companies to negotiate with unions.
What’s wrong with negotiating?
Nothing wrong with hating on unions.
Or companies that don’t treat their employees fairly.
Unfortunately what everyone is missing here is that the Big 3 automakers are slowly losing their ability to compete against most other brands around the world. Higher costs and/or lower quality will be the result if they meet the UAW demands. My cousin just bought a new Tahoe that was $165k… seriously! Some of these vehicles are topping $200k. By 2027 these vehicles will no longer be affordable to 95% of the population, and if no one can afford to buy the new vehicles, companies start shutting down permanently.
Also, The UAW should be demanding salary caps on executives in their negotiations. Crazy bonuses and payouts hurt the companies just as much as high hourly wages.
Well, then your cousin is an idiot, because a fully optioned Tahoe with basically everything checked still comes in under $100K.
I mean, expensive, but you’re talking 1.5-2x the MSRP.
Your cousin is a moron. Why would anyone pay Escalade V prices for a Tahoe??
that’s actually what he has, but they’re all basically the same thing…. a tahoe. Nice comment though, maybe one day you wont be so poor and can get one too…lol probably not
Should pro athletes be capped in what they can earn? Maybe people could afford to go to a game if the athletes weren’t earning what they’re earning
Players in the NFL, NBA, and the NHL has agreed to a team salary cap. Only MLB players did not agree to a team salary cap.
There’s almost a 0% chance your cousin paid 165k for a Tahoe. Not sure it’s even possible. Even with an absurd 10k market adjustment, I don’t think you’d be over 100k.
Its the Cadillac version Tahoe. In v spec they’re going for just under 200k so he got an amazing deal…. 700hp handmade engine, and 0 to 6 in 4 sec…. crazy for a vehicle of that size
They’re punking out already. They’ll be bought off like the last 4 or 5 UAW teams. Should have gotten the Teamsters to get the UAW a decent contract. Poor retirees will be left with nothing too. 21 years and counting. No money, No Juneteenth, No 32 hour work week, No retiree wage increase, no end to tiers, all equals A no win situation. I had faith in the new guy. He talked a good game, but put no fear into no one
So far, nobody has been able to answer this question…Why do autoworkers (that stick emblems on tailgates or install headlight housings) think that they deserve better pay and perks than our nation’s first responders?
–A 32 hour workweek with 40 hours of pay?!? Keep dreaming!
–Juneteenth?!? A made-up woke holiday…quit crying and go back to work.
–35%-46% pay increases?1? What justifies this big of an increase?
One thing I have not heard a single UAW member talk about since the strike talk started is their record profit-sharing bonuses.
When you fight greed with even more greed, THAT IS A NO-WIN SITUATION.
The one thing I’ve never heard you mention Tim is that for nearly 20 years when the Big 3 were making Billions in profits, UAW members were receiving $250 to $400 dollar profit sharing checks. Then the UAW decided that formula had to change in the late 90’s. You’re just another inexperienced and uneducated blowhard when it comes to inner workings of the auto industry Tim. You’re jealousy of UAW workers is blatant. Btw, you still haven’t answered the question I asked about detailing all of us about grueling manual labor work day you endure as you make assumptions and fallacies about auto workers.
They’re lucky to even have profit-sharing. They concern themselves about the gains these manufacturers realize, but they’ll never be the ones digging into their own pockets to cover for the losses a manufacturer also has to realize.
Tesla has it right — keep parasitic unions and their rats out of your factories if you want to remain in control of your business.
Quick question, why are they trying to eliminate tenure tiers? Why are 20 year veterans pushing to make the same amount as a new hire with no experience. How are workers with a lot of time and experience okay with that? Out in the non-union labor market, the idea that some fresh brand new kid with no track record merits exactly the same compensation as someone with 1-2 decades or proven results is highly frowned upon.
I worked for Kroger back in the late 70’s. I was making $8.50 an hour stocking shelves at night (10;00pm -7;00am). Sundays was paid double time. Today, about 45 years later, they are making about $20 an hour and Sunday is straight time.
The uaw pay raise does seem high… but it’s no secret how expensive the price of new vehicles has went up along with executive pay raises. So the car companies are screwing the consumer anyways… and that’s before these negotiations. Kind of makes the uaws demands seem not so bad
That’s because approximately only 12 to15% of the cost of a new vehicle is labor related Happy. There are many here on this site that actually think that if the UAW took a 50% pay cut, that the cost of a new vehicle would drop by the same amount…….LOL. Meanwhile, some vehicles that are produced in low wage countries ($3 to $5 an hr for labor) and do those vehicles cost alot less because of it?
You don’t seem to understand the issue — it isn’t just the cost of labor paid to the UAW workers, but also the inefficiency they help to create by making vertical-integration nearly impossible; therefore, union infested companies have to effectively farm out a huge amount of their needs to countless vendors who are all taking their cut. There’s a reason non-union companies like Tesla see decreases in the pricing of their products over time, but UAW manufacturers have the exact opposite happening.
This will inevitably come to a head and these manufacturers are going to eventually purge themselves of union rats in order for them to remain competitive, lean and able to adapt on the fly.
So you don’t think Mary making 20 million a year is excessive?
They want a 40% pay raise? Then quit paying union dues. That’s a hefty lift there just keeping those fat cats fed.
If GM and Ford shut down another plant in the states, that 40% pay raise isn’t going to do anyone any good.
I have been union for 46 years. It always amazes me, how far from reality both sides are!
Better nix the 32 hour week too.
The UAW is losing the PR campaign here on this in social media.
The public as a whole who are seeing interest rates and inflation growing will have no sympathy for the UAW.
i am a GM retiree . i would like to see our meager little $800 COL given back to us
The UAW demands seem high to some people. I’m wondering if those people know how the auto workers gave up a lot of benefits, vacation time and raises “in good faith” to help the company during bankruptcy with the understanding that once the company was profitable again they would get all that back. Some employees haven’t had a raise in years, no cola since 2008, anyone hired after 2008 does not have a pension, they have not received their vacation time back, despite record breaking profits, yes they get profit sharing based on how profitable the company is, that money is also taxed like crazy, the union takes their cut so when the news reports that employees received $12,000 profit sharing, they don’t actually have $12,000. Meanwhile, the CEO is making $13,932/hourly. The auto workers pay does not effect the price of the vehicle.
So… like every other bonus out there…?
Sorry to break it to you, but most employees don’t have a pension anymore, nor anywhere close to the number of holidays that the UAW has, or the amount of profit sharing checks, nor guaranteed raises (being able to move up in tiers counts as a raise!)
None of these people are getting any of those things back. However, unlike the UAW, if they feel downtrodden and uncompensated, they get up and change jobs. If your skills are so in-demand — there’s the door!
We’re in an age where the intelligent have to remain silent to avoid offending the stupid.
Screw it! Fix your old car instead.
I am not a UAW member. However, o agree wholeheartedly with their demands. Why should all the top executives get boat loads of money and the assembly line worker get crap? I work for a prominent business in Columbus Indiana and while profits are awesome, the assembly line workers don’t get sh**! This company used to be a awesome company to work for. But GREED gets in the way. UAW, stand tall!!
Sure give them the money but no more bailouts…lol…
Ice vehicles are dying TESLA all the way …they tried to change tooooo late game over boys…
Losing $$$$$$on every ev vehical
Over paid union baby’s work in the real world slave labor Uhaul no automation baby buttons to push manual labor no ac get dirty baby s
Detroit already cannot compete. Long time GM customer……switched to Honda Pilot and Tesla. Both superior to last GM vehicles we owned. Good luck to Detroit and the UAW, we are not coming back.
Well first GM offer was 11-12.4% minus 30% of current profit sharing agreement (13% of current pay is averaged as PS bonus,plus 2 other bonuses deleted(1500$) So pay raise of about 4.5$/hour and bonus reduction if 2.5$/hr yields 2$ an hour raise over 5 years.. Inwould say that is a good formula for GM
the union has done alot over the years, i was a steward, but iv seen companies put out of business from unions. rath packing co waterloo ia. a large packing plant, went under because they had ru hire
4 men to do a one at most 2 man job. 3 sat in break room playing cards for an hour then switch workers, so they worked 2 hours out of 8, the pay was above avg. for the area, when it went under they went to deeres but most were not hired for the same reason. rath would have walk outs for no reason, wild cat strike. deeres wanted no part of it
At least UAW workers have half a chance of a good contract. Railroad workers are under the Railway Labor Act from the early 1900’s. It makes it all but impossible to strike for a good contract. Railroads know this so at negotiations they stall and put word out on TV that if railroad workers strike the whole economy is in the toilet in 23 hrs. Then they get congress and the president to intervene so the company wins. If the railroads do strike, they’re forced back to work in less than 24 hrs. Auto makers forced concessions on workers when they were near bankruptcy. Fast forward to negotiations, what have you done for me lately? Why should I give you decent raises? My vehicles are only selling for outrageous prices and my Caleb’s partly is astronomical. We can’t afford to give you raises too…..
Single Malt Scotch is a proponent of the race to the bottom.
Everyone else has been screwed out of pensions, so join the club UAW.
The new hires ( not so new…..2008) make only $17. Per hour. No pension?
That’s not even a middle class job.
In 20 years or less when the older, decently paid workers retire, our sons & daughters working there will ALL be $17. Per hour workers.
The automakers are offering 20% raises so they know they must give some catch up money.
Right, the bottom tier make the same as Tesla workers make. It’s the rich that want to keep the poor poor. If you’re poor you have to keep working everyday and the rich don’t make money unless you’re working.
I hope that the Bible is right in saying, “it’s easier for a camel to pass through the eye of a needle than the rich to enter the gates of heaven.”