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.