The United Auto Workers (UAW) union rejected wage and benefit offers from Detroit automakers, escalating tensions just days before a potential strike by 146,000 employees.
In a Facebook Live appearance, UAW President Shawn Fain declared that he discarded proposals from Ford, General Motors, and Stellantis. He criticized the automakers for not offering a fair contract to the union members.
Negotiations are ongoing, but Fain cautioned that if agreements are not reached by Thursday’s deadline, a strike will occur at all three companies.
Stellantis, previously known as Fiat Chrysler, made its first counteroffer to the union’s demands with a 14.5% wage increase over four years. Ford offered 9% raises with lump sum payments, while GM proposed 10% raises with lump sums. All companies included additional lump sum payments to compensate for inflation.
Stellantis’ counteroffer also includes improved wages for temporary workers and accelerated progression timelines for employees moving through the pay scale. However, there is still a significant gap between the union’s demand for 46% pay increases and the automakers’ offers.
Fain emphasized the potential impact of a strike, not only on the auto industry but also on the Midwest and national economy. The union’s demands reflect their belief that automakers can afford raises due to their substantial profits and CEO compensation.
A strike would not only disrupt the industry but could also lead to higher vehicle prices and a shift in sales to Asian automakers. Automakers argue that high settlement costs would hinder their ability to invest in electric vehicles while producing internal combustion vehicles.
Despite the rejection of the automakers’ proposals, negotiations are ongoing in an attempt to reach a fair agreement before the deadline.
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