GM is asserting that it has met its commitment to provide the United Auto Workers (UAW) labor union with an historic contract proposal amid ongoing strikes at multiple GM facilities. Details of the offer were highlighted in a new video featuring Executive Vice President, GM Global Manufacturing and Sustainability, Gerald Johnson. The video was posted to a General Motors website dedicated to providing updates on negotiations between the automaker and the UAW.
The UAW made its initial round of strikes on September 15th following the expiration of the previous labor contracts. The UAW is currently striking at all three of the Big Detroit automakers (GM, Ford, and Stellantis) simultaneously, a first for the union.
In the new video, Johnson outlines the details of GM’s latest proposal, which include a 20-percent wage increase over the life of the contract. Most team members (roughly 88 percent) will receive an immediate wage increase to $35.55 per hour, while temp employees will receive $20 per hour. Additional wage increases will be applied each subsequent year, rising to $39.24 per hour by the end of the contract. General Motors estimates that bonuses, profit-sharing, and overtime will increase wages to roughly $100,000 per year. The deal also includes a cost of living allowance (COLA) to offset inflation.
“This will put team members amongst the top 25 percent of full-time American workers,” Johnson says. “And it’s also worth mentioning that our wages under this offer are 30 to 40 percent higher than similar roles at foreign trans plants and Tesla.”
With regard to health benefits, the latest General Motors proposal includes zero monthly employee contributions and no deductibles, with full dental and vision covered. GM will also cover 100 percent of medically necessary hospital, surgical, and medical care. On the subject of retirement, the proposal includes 8 percent company-paid contribution on eligible earnings, and no employee contribution required, plus a 25-percent increase to cover healthcare costs in retirement. Finally, the contract includes five weeks of vacation time, two weeks of paid parental leave, and between 17 and 20 paid holidays, depending on where holidays fall during the year.
General Motors estimates that this offer provides, on average, $150,000 in annual compensation per UAW employee.
GM Executive Vice President, GM Global Manufacturing and Sustainability, Gerald Johnson
“We believe we have met our commitment to provide historic improvements in wages and benefits and have also addressed the future of EV battery manufacturing,” Johnson states, referencing General Motors’ decision to include workers at the GM Ultium battery plants under the national UAW agreement.
The Ultium battery plants are operated under a joint agreement between GM and South Korean company LG Energy Solution. The inclusion of Ultium workers in the broader UAW agreement is considered a major victory for the union.
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Comments
Its time to get back to work!
If gm is so worried about its future then maybe the ceo, coo and shareholders beat rethink their compensation packages , just saying . Anybody who gets 29 million a year while it’s workers , the rank and file , who struggle on a daily basis have become unattached to reality . Get what’s rightly yours UAW members , because the minions at management can’t build a car if it was a Lego car put in front of them .
she got a lot more. that was just her direct cash pay
mary msrp barra coming with another hike soon to pay for it all.
Not defending Mary but the facts are:
About $9.5 in cash or equivalent compensation. The rest is stock. The options part isn’t really a guaranteed gain either.
$2.1 million in base salary
$6.3 million in incentive bonus compensation
$1.1 million in other payments (perks)
$14.6 million in stock awards
$4.9 million in option awards
Thank you for letting the facts get in the way.
Might note the stock is not only a value if and when it is sold.
I have known a number of people who have run large companies. Few have it easy as many think. I know one who walked away as he could not take the pressure and became an FBI agent at 1/4 the pay.
The unions lie much more than anyone on this stuff. Fain makes nearly $500K with his Training job and union pay,. He get more than the $500 a week strike pay that the workers are now getting.
The unions have really tried to wreck out economy and our ability to produce products in this country.
There once was a time where it was just American production vs American Production but today we are dealing with global production and the work goes to those willing to do it for the best price.
We have only two American automakers now and Ford is on weak ground financially.
I would not be shocked if the Ford Family cashed out of the business and sell off what they have left of the 51%. They could invest that money in other things and make a better return for the family.
What is of concern is if we go to war and need production like WW2 who will we turn to? the automakers and other MFG provided tanks, planes, guns for not only us but all allies. This is what beat Hitler. We could never match that today.
So, if Mary gave up $20M, each UAW member (48,000) would get around $416.
If you make $100K and don’t have to pay for any healthcare costs (as most people have to pay for dental, eye, co-pays for appointments and meds, deductibles, etc.) and are complaining that you can’t make ends meet, your spending habits are the problem, not your salary. There are people who work more hours doing hard labor or have multiple degrees and don’t make that much with that many benefits (including all that time off).
And stop looking stupid by complaining about how much high-ups make just because you’re jealous and/or don’t understand how hard they work and how many hours they work (24/7 in many cases) and could never do what they do. The UAW employees would not have jobs and would not have anything to build if it wasn’t for the higher-ups. Everyone has their place because it is how businesses work.
If you want to earn executive-level pay, go get an executive-level job. Installing headlights or sticking emblems on tailgates is not executive-level…it isn’t even skilled trades. Be happy that you are even getting a 20% raise and a compensation package worth nearly $150,000…for a job that you can train anyone to do in less than one day. Most of these “skilled trades” wannabe workers wouldn’t survive 5 minutes in a non-union shop with real labor.
LOCK OUT THE UAW UNTIL THEY COME TO THEIR SENSES. Make the UAW spend its strike fund to support these losers.
unions just protect the bums
it is not the uaw. It is their leader who is trying to make a name for himself. I would say most workers would accept this proposal. But they cant vote until their leader, Shawn, allows them to.
If the UAW wants to run GM, buy it!
Great points, but who the hell in the real world, at their job gets a 20 or 25% increase. I call BS on this, as anyone who doesn’t believe this is going to drastically affect the price of vehicles in the near future has their head well up their shute! I currently own 4 GM made vehicles, and have always owned GM products, but will be looking at Japanese in the future.
The GM offer seems very fair, stand your ground GM for the good of your customers and your future. When it’s no longer profitable to keep the plants open, lock the gates and wait. Use the lockout time wisely to harden your plants against future work stoppages, like employing more robots, move UAW workers to nonessential jobs that don’t imperil critical paths of vehicle assembly. Get smart and figure out how to better survive labor unrest.
Retired from GM Oshawa 8 years ago. I just can’t get my head around the exorbitant wage demands by the UAW. The most we ever got was 3%, 2% and 2%. plus a small signing bonus. I’m actually shocked at what Canadian workers got from GM this round of talks. If I’d gotten a 20%+ raise, plus bonuses I would have thought I’d died and gone to heaven. What good is a 36% pay hike if GM shutters your factory because it’s no longer financially feasible to run the place. Fain will keep the membership out until their fund is about to run out and then he’ll announce this miraculous deal that was no better than the one he could have accepted weeks before. Perhaps instead of Mary announcing a new contract offer, she’ll start announcing permanent plant closures. Wouldn’t surprise me. We have a fair deal in Canada that works for both workers and GM, so perhaps Oshawa is about to get some new product in the very near future.
Since you had a weak Union then we should fold? F..NO!
I wouldn’t call a 20% raise plus incentives weak. I’d call it being fiscally responsible, recognizing the limits of your expectations and creating an employment future for yourself that’s sustainable. When the Canadian workforce broke from the UAW in the 1980s the UAW was on the profit sharing rant and Bob White wanted nothing to do with it. He said we’d be better off with COLA rolled into our base wages. The UAW received a fraction in profit sharing compared to the CAW’s cost of living. This went on for decades. When I retired I had made more than $100,000 more than a comparable UAW worker because of this. With these outrageous expectations the only line you’ll be heading for will be the unemployment line when Mary shutters your facility. Be passionate about your demands but be reasonable, your future depends on it.
This offer drives GM back to the levels it could not sustained during difficult market conditions and eventually led to bankruptcy. I thought we are supposed to learn from history!
Probably time to sell GM stock.
GM & All COMPANIES need to DECREASE EXECUTIVE PAY to 5X Median company worker pay!
Watch where Truck and Auto prices go if this offer is excepted. Won’t be good for the consumer. GM will have inventory they can’t move. They are pushing 4 cylinders in half tons now to make them look more affordable. What next, another bailout ?????
If the UAW does not accept this offer I would hope that GM would take the time to step back and look at the viability of the entire business model, especially in light of the recent “evolution” of EV vehicle demand.
– Withdraw this and all previous offers
– Suspend further negotiations until a plant-by-plant financial analysis can be conducted to determine the labor cost threshold for each plant.
– Use this financial analysis to develop an offer to the UAW and include potential plant closings if business conditions are inadequate to support labor costs.
– Submit this offer no earlier than January, 2024 and let the UAW decide whether or not to shut down plants. Although in theory GM loses $ every day its plants are not operating in reality they have significant vehicle inventory to continue some sales. Also, between hunting season, Thanksgiving, and the Christmas holiday the production loss would be less than any other 2 month period during the year.
So far the UAW has been calling all the shots and GM has just been responding. Time to reverse this situation.
Jobs are all going to end up in Mexico. I for one will be buying Japanese, German, etc, rather then pay all these greedy a holes!
Several friends & family are already doing it & doubt any will ever buy domestic again. Honda & Toyota mostly with a couple foreign brands. Goodbye to the F150s & Camaros.
Good for you. It will serve the greedy union bosses up here in Canada damn well right. Buy Japanese, German etc.
Like I said in an earlier post, Oshawa could be looking like a favourable place to receive future product allocations previously earmarked for U.S. facilities. Be careful Mr. Fain.
I assume you mean future allocations marked for the u.s. in terms of Japanese Vehicles? Canadian CAW are just as greedy, 20-25 percent increase in pay? What the heck?
An employee starting at GM today is making $2 an hour more than the starting wage paid 28 YEARS AGO. You forget that wages make up a small percentage of vehicle costs. And for the rest of you saying, “That’s it, I’m buying Japanese from now on”, here’s a little wake up call. Next door neighbour has a 2021 RAV4, wanted to get a new one. He told me he went to the dealership and they said sure we’ll order you a ‘24 the same trim as yours……$8,000 more!!! Every auto manufacturer is skyrocketing their prices. The only difference is the Big 3 workers will be reaping some of the rewards of this while the Japanese and German workers continue to fall behind on inflation. Was at a backyard BBQ many years ago and a guy there was an employee at Toyota in Ontario. He said we don’t have a union and our wages are comparable to yours at GM Oshawa. I looked at him and said “ Why do you think your wages are high? It’s because of the auto production pay standards set by the Big 3 over many, many contracts. When Toyota and Honda set up shop in Ontario they realized they had to follow closely. If we hadn’t fought for decent pay and benefits you’d be building Toyotas for minimum wage, you dumbass.
Good grief! I worked in a highly technical field, often times under hostile conditions. The particular industry I worked in is known for paying excellent wages. Even with 20 years experience and good reviews, I never ended up with free medical/dental. Not even the CEO had that. This is a ridiculously lucrative contract proposal. If I were Mary, I’d lock the doors and pitch the keys over the fence. You think cars are expensive now…just wait.
My wife works for the only hospital in town and she has our family on her insurance. For me to be on her insurance( I do have insurance available at my work) she not only pays a premium for me but also a $75 surcharge every pay period for my coverage with hers. And with all that, it’s still $60 per month cheaper than if I took the insurance offered with my employer! In my current situation, if this contract was thrown at me, I would’ve thought I hit the lottery.
I have a BS degree and have taught, worked on the assembly line, and worked in skilled trades. I have seen corruption in the union and in management. You need both sides to keep the other side in line! I believe it is time to get back to work!