The United Auto Workers (UAW) labor union is allegedly seeking a 25-percent wage increase in contract negotiations with the Big Three Detroit automakers (GM, Ford, and Stellantis). The 25-percent figure is a substantial reduction to the union’s original demand of a 40-percent wage increase when negotiations initially began. The union recently expanded its strike to include several prominent production facilities at each make.
According to a recent report from Automotive News, which cites people familiar with the negotiations, the 25-percent wage increase was relayed to some UAW bargaining teams in recent days. If accepted, the figure would put top hourly wages at roughly $41.20 by 2027. The Big Three have each proposed a 23-percent increase, which would put top earners at roughly $40.39 per hour. If the UAW is willing to accept a 25-percent increase, it could provide an indication that the union is closing in on a deal to end the strike.
The UAW launched its initial round of strikes against the Big Three Detroit automakers on September 15th following the expiration of the previous labor contracts, now marking six weeks since the strike began. The union is implementing a targeted strike strategy wherein workers at certain facilities are called on to walkout, rather than all workers at all facilities, all at once. The union has expanded its strike against the Big Three on multiple occasions, most recently with walkouts at the GM Arlington plant in Texas, Ford’s Kentucky Truck plant, and Stellantis’ Sterling Heights Assembly Plant (SHAP). It’s estimated that the strike has cost GM upwards of $800 million so far, with the total hit to the U.S. economy exceeding $7.7 billion.
Last week, UAW President Shawn Fain provided an update on negotiations between the union and Big Three automakers, detailing the latest offers and where each make stood in terms of tiers, wage progression, cost of living allowance (COLA), temp employees, and more. The UAW represents roughly 150,000 workers across all three makes, with roughly 45,000 workers currently on strike.
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Comments
That is where I figured they would end up, but with the COLA raises, it could equal out to over 30% over the 4 years. That is before they get thousands of dollars in annual profit-sharing checks.
Lock them all out! Get ready for car prices to skyrocket again.
But, But labor cost is only 5 % of the car price. Or not. It is closer to 12%. Even with that said, an increase of this size for UAW represented workers will drive the wages for Engineers and entry level salary employees up as well which will then compound the increase in the Pricing beyond the “Labor 5%” that the Union likes to claim.
I wouldn’t give the 25%. I would not offer anything further without reducing elsewhere at this point.
That 5 % is an outright lie. That’s final assembly only. When you consider that the engine/transmission/axle/frame/wiring harness are also UAW made, that figure jumps up to 30-40% with much of the rest being non union labor costs.
Also, 40$/hr is way too much for turning screws full stop. When screw turners make more than degrees employees such as engineers and accountants, there is no incentive for the higher risk jobs.
GM should pull their 23% offer and say the union had a chance at a really good deal, but got greasy and the best they will get is 20% no cola, and if they keep striking, it will be 18% full stop.
GM needs to grow a pair and the longer the strike drags on, start pulling offers off the table. GM should be the ones giving the deadline. “Don’t accept our offer by midnight tonight then the COLA and ratification bonus are off the table, then any longer we will drop the raise offer by 5% per day.” Once the raise offer hits 0%, host a jobs fair and start hiring non-union workers to take their place. Auto manufacturers could easily abolish the union if they wanted too. It would be painful for a while and may put them on the brink of bankruptcy but it can be done.
I see more manufacturing moving to Mexico as a result of this strike. GM already builds light duty trucks there, they could boost production and move trucks out of the USA. HD trucks could move some production to Canada since they are already building them there as well and close Fort Wayne.
That is so true. It’s the principal of give an inch take a mile. If you keep conceding, they will keep demanding. It’s supposed to be a negotiation, not a holdup.
It would be nice to see in 2027 that before the UAW has a chance to give their mile-long list of “audacious” demands, that GM gives them an offer first and say, “this is our pay and benefits package, if you would like to continue to work for GM and the UAW, this is what you will get.” I mean, that is how it works in the real world and for GM salary employees.
Or better, GM should say, “here is xxx million dollars, it is yours to choose how you would like to spend it over the next 4 years” and stop with all this negotiating this and that. Want to use the money for higher pay, go for it. Want to use it for pensions, be our guest. Want to use it to pay retirees more, yours to decide. Want to use it for more health care benefits, so be it…
AND – GM should be able to fine the UAW for missed production targets due to strikes. $1.000 per vehicle might get their attention. A million dollars for every 1,000 vehicles not built! They can use their fat strike fund to pay the fines.
I would love to be at the negotiating table.
That is 40/hr in 2027, not today. 40 in 2027 may well be equivalent to 30 in 2023. I guess you come from the upper classes and you agree with Marie, Let them eat cake.
GM should “lower” it’s counter offer!! Maybe down to 10% or 15% to force Fain to actually negotiate a “realistic” number somewhere between 15-20% over the next 4 years. Not immediately!!! The UAW should take any offer below 20% and be happy with it! Nowhere is it written that if a company makes more money…so should you!! If you’re unhappy with your wages, go get another job somewhere else like everyone else does!!!
Fain should donate all of his personal income over $500 a week, to the strike fund (or maybe all of the small businesses his strike is effecting). I bet the strike would be over within a week!! I’m not against the workers getting a “fair” deal. However, highway robbery is not at all fair!!!
Steven, your comment is misinformed about labor cost. That 5% is total Automaker labor cost, which is why neither of the CEOs disputed this number. As far as making more money than people with degrees. A degree only means you are trained in particular field just as someone who is certified, of which many of us UAW workers achieved one or both. As they say in sports negotiations…you are worth as much as you can imagine or negotiate successfully.
Wow! Sure are full of yourself! Sports contracts are an even bigger joke! Who watches that crap anyways?
UNIFOR ratified 20%+COLA with 80.5% yes vote. GM should hold firm at the same offer for the UAW and nothing more. UAW workers should be glad they even have a job at all still.
I still believe their greed will either be the end of the uaw or the big three making vehicles in the United States. Either way is not good for the workers.
The thing that has always amazed me is that this contract comes up every 4 years. Everybody know that well in advance. Why do we always end up striking or threatening to strike?? This last minute negotiation is BS. These issues should have been resolved months ago. But neither side takes it serious, regardless of what they say when the cameras are on.
Just like the way the country is run! No one does their job keeping an eye on the budget (or contract in the UAW’s case), until it’s about to expire. Fain should not be given that much power!!
It’s all a case of screaming “squirrel” and all the dogs run in a different direction! Watch the right hand so you don’t know what the left hand is actually doing! This strike is politically motivated just like everything else. They are controlling inflation (& many people’s lives), which controls consumer activity. They will do anything to substantiate their steam rolling of the American consumer. As usual, we’re all left holding the bag!!! It’s all BS!!!
My wife worked for a police department and retired after 34 years. Most police and firemen don’t make that much money. Maybe in NYC and Chicago but 90% don’t. It would be better to train monkeys or buy robots than to pay uneducated people to turn screws and bolts. Most of the UAW people haven’t even graduated from high school! Most people at McDonald’s have a higher education. I would tell them all to pound salt and hire veterans only to build their products.
The three auto makers need to do what Jimmy Carter did years ago to unions. tell them to go screw themselves and then hire them directly on. This duche bag president of the UAW is getting richer and richer. The big 3 could save a lot of money just hiring them directly.
And when did Jimmy Carter do that?
Sorry Reagan vs air traffic controllers
I’d like to know what the hourly rate comes to with all the extra benefits like health insurance, paid holidays, sick days, etc. etc. etc.
I believe we’re gonna concessions in the next contract.
Will I get a 25% increase in Social Security? Will I ever be able to afford another GM vehicle?
No, and No. Yes I’m on SS and I will never purchase another new vehicle. Especially from the three domestic mfgs.
Join the club! I know that several of our relatives & friends have made the switch of the last few years from domestic Big 3, to Japanese vehicle quality.
We went and took the corvette factory tour and many parts of the production is by AI especially the paint shop.The more the union wants the less human jobs will be available and then all that will be left is QA after the vehicles roll off the completely automated assembly line eliminating many many jobs.The union should be careful for what they wish for!!
Fain is going to be sorry for his greed and the workers are going to pay for it by the big 3 taking their companies to other countries or getting robotics to replace the workers
You guys should try working without a pension I have 25 yrs in with gm and I have no pension so u negative people aren’t in our shoes so until u are need to stop leaving negative comments towards the uaw period
Probably 90% of the retired people don’t have a Pension, so get over it! That’s what your 401K is for. Put money in it and manage it like everyone else! No one owes you a living. I’m retired and living on $23K SS, and I even bought one of your stupid Yukon XL’s!!! Never again!
Bee, who’s fault is that? You could have left and found a job with a pension or contributed to a ROTH IRA. What you needed was a good financial advisor.
Funny to read these comments given by people who never stepped foot in an auto plant. So many of you are so poorly informed or are being fooled by GMs propaganda. I saw new employees leave for lunch on their first day and never come back. It’s a lot harder than you think.
A 25% raise will not raise cars by 25%. Just look at the last few years when GM screwed the eyes out of their ‘customers for life’ by eliminating rebates and selling above MSRP. Corporate greed raised those prices. The workers wages did not effect these obscene increases.
Can’t wait to read the ‘thumbs down’ responses by you babies. Lol.
That’s because they are not used to working. I’m 64 y/o and move 3000lb machines with manual pallet jacks and breaker bars every day. Some people just don’t like hard work.
99% of the comments are coming from either the 1%’ers of this country or very jealous people who couldn’t get a union job! The basic fact here is that the companies were not only saved by government bailouts, but also the UAW membership giving up all of the benefits we had then, to help during the bankruptcies. Now that the UAW wants pay and benefit gains back, we are labeled as “Greedy”….Give ma a break people, we don’t only go to work and get forced most of the time to work overtime only for the benefit of SHAREHOLDERS!!!
It’s not about greed. Your lack of education and being unskilled labor doesn’t even justify $15 per hour. You aren’t doing anything a monkey couldn’t be trained to do! Get over yourself. Your products are all crap and your workmanship sucks!
You obviously have never worked on an assembly line!
I’ve wrked there at Gm for 40 years..
I’ve had several diffrent jobs,,corporate tunnel, shoulder and bysept surgery.not because I wanted time off because it hurt sooo bad.
Please do not attempt to know what we deserve. Jobs come 50 seconds out of the min.
You have to wait to go to the batheroom!