The president of the United Auto Workers (UAW) labor union, Shawn Fain, just provided an update on negotiations between the union and the Big Three Detroit automakers (GM, Ford, and Stellantis). The update was provided via a livestream address on social media, and included a comparison of the offers currently on the table between each of the Big Three. The UAW launched its initial round of strikes on September 15th following the expiration of the previous labor contracts, and the union has expanded its strike against each automaker on several occasions. Fain, however, did not announce any new strike expansions with this latest update.
With regard to wages, the UAW is demanding double-digit pay increases to match the average pay increases of the CEOs at the Big Three, as well as to catch up with inflation and make up for decades of falling wages. The latest offer from GM, Ford, and Stellantis includes a 23-percent pay increase over four-and-a-half years.
Wage tiers were also addressed, with the UAW demanding an elimination to the wage tier system. GM is proposing elimination of tiers at GM Components Holdings and Customer Care and Aftersales, while Ford will eliminate tiers at its Rawsonville and Sterling facilities, and Stellantis will eliminate tiers for Mopar workers. With regard to wage progression, the UAW is demanding a 90-day progression to the top rate, with GM proposing a three-year progression for current workers and four-year progression for future hires. Ford is offering a three-year progression, while Stellantis is offering a four-year progression.
On cost of living allowance (COLA), the UAW is demanding that adjustments keep up with inflation. The union says that GM is approaching restoration of COLA, but is not quite there, while Ford has restored COLA to 2009 levels. The UAW says Stellantis is still proposing a deficient COLA. On the profit sharing front, GM is proposing the current formula, but will include temp employees with 1,000 hours, while Ford is moving to total company profits, including Ford Credit, and Stellantis is maintaining the current formula, without including temp employees.
On the issue of temp workers, the UAW is demanding that workers are converted to full-time after 90 days. GM is offering conversion at one year of employment, and will raise temp wages to $21 per hour. Ford is offering current temp conversion at 90 days and $21 per hour for remaining and future temps, while Stellantis is offering conversion of 1,000s of current temps to full time and $20 per hour for future and remaining temps.
The UAW is also demanding the right to strike over plant closures, which GM has rejected, while Ford and Stellantis have accepted. All three automakers are offering Juneteenth as a holiday and two weeks of paid parental leave. Finally, on retirement, GM is offering 8 percent retirement contributions and $1.25 per hour worked on health care in retirement and a $3 increase to pension benefits, plus $1,000 lump sum payment for current retirees. Ford is offering 9.5 percent contributions and $1 per hour worked on health care, a $3 increase to pension benefits, and a $250 lump sum payment for current retirees. Stellantis is offering 9.5 percent, $1 per hour for health care, $3 increase to pension benefits, and no increase to current retiree pay.
Fain added that it may expand strikes at a future date if further progress isn’t made.
Subscribe to GM Authority for more 2023 GM UAW news, UAW news, GM business news, and around-the-clock GM news coverage.
Comments
Well, it’s nice that I can tell my kids they don’t have to pursue a high-skilled job. They can just be a production-line worker making the same or more than a Dentist, Lawyer, Nurse, or Garbageman.
Imagine on one hand saying you want your wages increased to protect against inflation, yet being one of the contributing factors to the inflation itself. Watch the prices of MSRPs increase beyond norm.
I truly hope they torpedo negotiations completely and strike Lansing and/or Arlington. Put your money(strike fund) where your mouth is.
And I still can’t get a Genuine GM front License Plate Bracket from my local dealer’s Parts Dept.
Just be glad it’s a tag bracket. Instead of an engine or transmission.
that has been the norm for a while now. with my amazing education it took me 20 years of fighting life to make it in life. i was being laughed at as i was making 40k vs some plumber making 90k in his 20s.
now the tables have turned but not because of my education, but because i became a ruthless person. education is worthless. its all about who you know and what random opportunities in life you come across and seize.
How amazing is your education if it took you 20 years that it took you this long to realize how bitter you are???
You think that Msrp will only rise , or has risen , due to the fact that the UAW are negotiating their contract ? . Best ask yourself why the past 3 years vehicle prices have risen how much , lumber has risen how much , food has risen how much , just saying . Your argument is futile and your foundation of fact is weak . People complain about somebody who makes more then then because why ? . People flight in life is about what they want to make of it . Remember that unionized jobs also ensure that non unionized workers pay is elevated as well . Not everybody in USA wants to be apart of the service industry off the interstate , just saying .
Bitter much? Stop your crying. You should change your tag to soiled skirt!
Stand your ground GM, you must protect your customers and your business.
how is raising the price of the product protecting their customers?
Carl.
GM has been screwing it’s customers for years. The last two years they have been raping them. The union is not to blame but the GM media machine will blame them to hide their greed.
temporary workers to fulltime = union dues! nothing more to the UAW Stay out and go broke people!
I have a teacher education, and am a journeyman electrician. The latter is tough at times but I make a better living being an electrician.
I have a teacher education, and am a journeyman electrician. The latter is tough at times but I make a better living being an electrician.
the trades are where the long term money is.
If Detroit caves in to the UAW their business model vs. non-union producers is not sustainable long term. Never good being the high cost producer and not the high quality producer.
Fain is doing a great job Eliminating member jobs while proving he is a bull headed fool. He must own stock in Toyota !
Shawn will either be a hero or a zero after the strike is over. I’m leaning towards a “zero”
Manufacturers are probably more than ever looking at how they can build more robots to replace overpriced and unreliable employees
Contract will have job guarantees and it’s very hard to replace them. It’s like teachers with tenure, good or bad it’s hard to get rid of them.
Imthatguy says inflation is taking msrp prices up. Msrp prices are going up because EVs are loosing money big time, making internal combustion engine vehicle prices inflate to cover the cost.Tax payers are paying $7,500 per EV, tax payers are helping fund new battery plants, and Elon Musk, government motors Tesla, makes 2 billion dollars a year selling carbon credits to competitors who are already struggling to convert their vehicles to electric cars that use electricity from power plants that use fossil fuels and they have to buy carbon credits. Did I mention INFLATION
At this point, Fain is making the UAW look bad. However, he’s making Mary look better.
Smart negotiating tool that more should adopt in bargaining talks. Tie the percentage of worker wage increase to the obscene percentage of increases in CEO and Corporate Officer pay…..included in that percentage should be the value of stock options and bonuses. Way past time to bring top Executive pay in the U.S. down to similar pay scales seen in the rest of the World and stop ripping-off stockholders.