General Motors Co. ( GM ) and Ford Motor Co. ( F ) on Thursday extended wage concessions to the United Auto Workers ( UAW ) as the automakers and Chrysler parent Stellants NV ( STLA ) try to reach an agreement with the union. September 14 deadline
Key receivers
- GM offered most workers a 10% pay raise in its contract negotiations with the automakers. Ford previously offered a 9% increase, while the union wanted 46%.
- The UAW’s current four-year contract expires on September 14, with 97% of its membership voting to authorize a strike if a deal is not reached.
- UAW President Shawn Fain called a recent pay raise offer by GM “insulting.”
- A week after contracts expired for about 150,000 members of United Auto, the union has yet to reach an agreement with Ford, General Motors and Chrysler parent Stellar.
- In the year A 2019 strike at GM resulted in $3.6 billion in lost revenue and production losses of 300,000 vehicles.
GM’s offer includes a 10% wage increase for most workers, a 56% wage increase for workers on the contract period and a 20% increase to $20 an hour for current temporary workers. The company offered two additional 3% one-time payments and inflation-linked bonuses.
Ford also updated its pay offer, including a $4.33 an hour increase for 8,000 UAW-affiliated workers. It says 80% of the 57,000 UAW-represented hourly workers at Ford earn an average wage of $32 an hour. Last week, Ford He said he had offered a 9 percent wage increase through 2027, while the union wanted a 46 percent increase.
The extended negotiations between the workers and the automakers must be concluded when the current labor agreement expires to avoid a possible strike on September 14. The negotiations have been plagued by challenges, with the UAW filing an unfair labor practice lawsuit against Stellants and GM last week with the National Labor Relations Board. The expiring contract covers about 150,000 auto workers across the three companies.
UA President Sean Fain called the GM and Ford offers “insulting” and said the union’s intention was not to strike. However, the union said 97% of members voted to allow strike action if no deal was reached. A breakdown in the latest round of negotiations led to a 40-day strike at GM in 2019, resulting in production losses of 300,000 vehicles and $3.6 billion in lost revenue.
