Benzinga - by AJ Fabino, Benzinga Staff Writer.
UAW President Shawn Fain did not mince words in a Thursday pushback against General Motor Company’s (NYSE: GM) wage offer, branding it as "insulting" during tense negotiations between the United Auto Workers union and Detroit's automotive giants.
What Happened: GM's offer came as contract expirations loom, offering a ratification bonus of $5,500 for all employees, a 10% wage increase for most employees and a 20% raise to a $20/hour wage for current temporary employees.
“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal,” Fain said Thursday.
“GM either doesn’t care or isn’t listening when we say we need economic justice at GM by 11:59pm on September 14th."
Why It's Important: An all-out strike could have rippling effects, not just for the companies but also for the Midwestern and national economy. The automotive industry represents approximately 3% of the nation’s economic output, according to an AP report, making a strike potentially devastating.
The union's demands include a 46% across-the-board pay increase over the course of the contract with 20% upfront; a shortened 32-hour workweek with 40 hours of pay; and the reintroduction of traditional pensions for new hires, among others.
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What's Next For Big 3, UAW: A potential strike involving 146,000 members against the three automakers — General Motors, Ford Motor Company (NYSE: F), and Stellantis NV (NYSE: STLA) — could become a reality.
Fain said the union's preference is securing new contracts without resorting to any strike.
Industry observers like Sam Fiorani, who spoke with the Detroit Free Press anticipate ramifications for the automakers if a strike does occur. For instance, Fiorani said a single-day strike could eliminate up to 25,000 units of production.
While achieving a 46% wage increase over the contract's lifetime might be ambitious, Fiorani said a figure like a 5% increase per year, resulting in approximately 20% over four years, is more realistic.
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