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UAW barrels toward ‘likely’ strikes against auto companies. Here are the latest details

UAW President Shawn Fain speaks union members during a Solidarity Sunday rally in Warren, Michigan, Aug. 20, 2023

Michael Wayland / CNBC

DETROIT — The Cooperative Auto Workers and Detroit automakers remain far apart ahead of the union “likely” strategically striking the companies after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain chance Wednesday night.

The outspoken union leader laid out significant details of current proposals between the UAW and General Motors, Ford Motor and Stellantis re wage increases, cost-of-living adjustments, bonuses and job security.

Fain also laid out general plans about how the fusing expects to strategically strike the Detroit automakers, if necessary. He said the strike will start at a limited number of puttings, followed by others, if required.

“If the companies continue to bargain in bad faith … then our strikes are going to continue to grow … We’re successful to hit where we need to hit,” Fain said Wednesday during a Facebook Live event.

Fain also said “an all-out deal is still a possibility.” He added if there are strikes, the union will not negotiate Friday, instead they will hold forth an afternoon rally in Detroit with U.S. Sen. Bernie Sanders, the progressive lawmaker from Vermont.

Fain referred to the junction’s plans as a “stand-up strike,” a nod to historic “sit-down” strikes by the UAW.

“I’ll tell you this, I’m at peace with a decision to strike if we be suffering with to because I know that we’re on the right side of this battle,” Fain said after discussing his faith in dogma and the union. “It’s a battle of the working class against the rich; the haves versus the have-nots; the billionaire class against everybody else.”

Key demands from the bloc have included 40% hourly pay increases, a reduced 32-hour workweek, a shift back to traditional pensions, the elimination of compensation orders and a restoration of cost-of-living adjustments, among other items.

Ford CEO Jim Farley, in a lengthy statement released by the company, disapprove ofed several of Fain’s statements, saying the automaker has not “received any genuine counteroffer” to the last proposal from the union.

He also said Fain overlooked a Tuesday meeting that he and Ford Chair Bill Ford believed the union chief would be attending. Farley ward off the company’s recent proposals, saying “if there is a strike, it’s not because Ford didn’t make a great offer.”

Stellantis did not as soon as respond for comment on Fain’s remarks.

GM issued a blanket statement that the company continues to bargain with the coalition and “have presented additional strong offers.”

“This includes historic guaranteed annual wage increases, investments in our U.S. building plants to provide opportunities for all, and shortening the time for in-progression employees to reach maximum wages,” GM said in an emailed allegation.

Here’s where things stand on key issues, according to Fain.

Wages

Fain said Ford has offered a 20% dilate over the four years of the deal, followed by GM at 18% and Stellantis at 17.5%.

Such increases would easily be record receives for the union in modern times, but Fain said they are not adequate because they pale in comparison to the roughly 40% pay spreads commanded by the Detroit automaker CEOs.

“We are seeing movement from the companies, but they’re still not willing to agree on the well-wishings of raise that will make up for inflation on top of decades of falling wages, and their proposals don’t reflect the massive profits that we’ve engendered [for them],” he said.

Tiers

Ending tiers, or in-progression pay, where members are paid differently based on seniority, has been a top superiority of the union for years.

Fain said each of the automakers has proposed cutting an eight-year grow-in period to top wages that are currently at myriad than $32 an hour to four years.

COLA

Fain has demanded a return to cost-of-living adjustments, or COLA, which proliferating wages to keep pace with inflation. 

Fain said all companies have made “deficient COLA” designs that either include lump sum payments, limit the amounts, or only kick in at certain levels that the combination finds inadequate.

Ford has proposed a return to a COLA formula used in the past, which Fain said wish provide estimated wage protection of less than $1 over the term of the contract; proposals from GM and Stellantis will-power provide no protection, he said.

Profit-sharing

The UAW wanted to enhance profit-sharing payments to provide workers $2 for every $1 million a following spends on share buybacks, special dividends and increases to normal dividends.

Fain said the Detroit automakers would rather each offered “concessionary profit-sharing” formulas that lower the current standards, which are based on a company’s North American profits.

The synthesis said Ford’s formula would have resulted in 21% smaller checks over the last two years; GM’s purpose have resulted in 28% smaller checks over the last year; and Stellantis would like to base payments on “an unsung internal company attendance calculation.”

Profit-sharing was implemented in recent years as a way for the companies to “reward” members in good outdates but not have to pay as hefty of bonuses when the companies were not doing well.

Temps

Ending the use of temporary workers, who can be repaid lower wages and have no job security, is another long-standing UAW priority. Fain said that Ford has agreed to mutate all current temporary workers with 90 days of continuous service to full-time workers, with full goods, in the tiered progression.

Fain said GM has offered “inadequate” benefits and “meager” wage increases for temps and that Stellantis’ layout provides no path at all to full-time status.

Job security

The UAW has proposed what it calls a “Working Families Protection Program,” under which workers at a shuttered factory would be paid by the automakers to do local community-service work. All three automakers rejected the proposal, Fain said. Stellantis favoured further, proposing a unilateral right to close and sell 18 facilities, including factories and parts depots, he averred.

Work-life balance

The UAW has demanded more time off for workers, with more paid vacation and holidays and extended parental renounce. All three of the automakers agreed to make Juneteenth an official holiday, Fain said, but only Ford went yet, proposing two weeks of parental leave.

Retirees

The UAW has demanded a “significant” increase to pay for retired workers. All three automakers rejected any improves, Fain said.

This is a developing story. Check back for updates.

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