As the deadline approaches, the United Auto Workers (UAW) union and Detroit’s three automakers – General Motors, Ford, and Stellantis – are at odds in contract negotiations, raising the possibility of a strike.
Let’s take a look at each side’s current stance.
UAW
The UAW is pushing for a significant 36% pay increase. Initially, they demanded 40% raises over the span of a four-year contract, or a compounded annual increase of 46%.
Alongside general wage hikes, the union is also seeking the restoration of cost-of-living pay raises, an end to multiple wage tiers for factory jobs, a 32-hour workweek with 40 hours of pay, the reinstatement of traditional defined-benefit pensions for new hires (who currently receive only 401(k)-style plans), pension increases for retirees, and other provisions.
The strikes will be targeted at a limited number of factories for each automaker. Union President Shawn Fain stated that the final decision on the strike locations will be announced at 10 p.m. Eastern time. While the possibility of all 146,000 UAW members going on strike remains, the union will begin with a select number of plants.
If no agreement is reached by the end of Thursday, union officials will not negotiate on Friday but instead will join the workers on picket lines, according to Fain.
The Automakers
While the union is demanding a 36% pay increase, the automakers – General Motors, Ford, and Stellantis – have countered with offers that are roughly half of that.
Ford’s CEO, Jim Farley, claims that his company has presented a generous wage offer, abolished wage tiers, reinstated cost-of-living pay raises, and increased vacation time. However, the union disputes his assertion that the wage tiers have been eliminated.
On Wednesday, Fain mentioned that the companies have raised their wage offers, but he still deems them inadequate. Ford offered a 20% increase over 4½ years, while GM proposed an 18% increase over four years, and Stellantis offered 17.5%. Fain considers these raises to barely compensate for the minimal raises of the past. In a 2019 agreement, the union secured 6% pay raises over four years, along with lump-sum payments in some years and profit-sharing checks.
Fain criticized the automakers’ offers concerning cost-of-living adjustments, stating that they provide little to no protection against inflation.
The companies have rejected increases for retirees who haven’t received any in over a decade, Fain added. Furthermore, they are seeking concessions in annual profit-sharing checks, which often exceed $10,000.
Stellantis disclosed that they have presented a third wage and benefit offer to the union and are awaiting a response.
GM stated that they are bargaining in good faith and have made “additional strong offers.”
Farley, the CEO of Ford, affirmed that his company has progressively made four generous offers since August 29. He highlighted that Ford has increased their wage offer, abolished wage tiers, shortened the time for hourly workers to reach top scale from eight years to four years, and added more time off.
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