[US] GM criticises union’s contract demands

In the US earlier this month, General Motors (GM) said it expected to offer unionised workers higher wages but stated that granting the ‘ambitious’ contract demands of United Auto Workers (UAW) would hurt its ability to make sound business decisions, Reuters reports.

On August 3, GM and union sources told Reuters the UAW was seeking at least a 40 per cent pay bump over the life of the four-year contract, including an initial 20 per cent hike upon ratification as part of ’ambitious’ contract demands.

At the start of August, the UAW reportedly said that the CEOs of the Detroit Three had won 40 per cent pay hikes on average over the last four years. The union highlighted GM CEO Mary Barra, who received $29 million in 2022 in total compensation.

The UAW presented its economic demands to Chrysler-parent Stellantis on August 1, General Motors on August 2 and Ford on August 4, ahead of the September 14 expiration of the current four-year contracts.

GM is America’s largest automaker. It said the proposals "would threaten our ability to do what's right for the long-term benefit of the team."

The union had previously stated that it was seeking double-digit hikes in wages, defined-benefit pensions for all workers and shorter work weeks. The UAW reportedly wants to make all temporary workers at U.S. automakers permanent, achieve a substantial increase in paid time off and restore retiree health care benefits and cost of living adjustments.

On August 2, UAW President Shawn Fain expressed support for a 32-hour work week; a significant decrease from the traditional 40 hours.

Sources told Reuters that the union wants the companies to agree to the equivalent of a paid day off per week, at a time when trials of a four-day working week are increasing around the globe.

GM reportedly said that said a fair agreement would reward employees but also allow the company to retain its momentum now and into the future.

"We think it's important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition," GM said.

The UAW did not immediately comment on GM's statement.

Mr Fain said on August 1 that the union demands were its "most audacious and ambitious" proposals in decades. He added that the UAW was proposing to have the right to strike over plant closures and to eliminate a two-tier wage system under which veteran hires earn 25 per cent or more than newer employees.

Source: Reuters

(Link and quotes via original reporting)

In the US earlier this month, General Motors (GM) said it expected to offer unionised workers higher wages but stated that granting the ‘ambitious’ contract demands of United Auto Workers (UAW) would hurt its ability to make sound business decisions, Reuters reports.

On August 3, GM and union sources told Reuters the UAW was seeking at least a 40 per cent pay bump over the life of the four-year contract, including an initial 20 per cent hike upon ratification as part of ’ambitious’ contract demands.

At the start of August, the UAW reportedly said that the CEOs of the Detroit Three had won 40 per cent pay hikes on average over the last four years. The union highlighted GM CEO Mary Barra, who received $29 million in 2022 in total compensation.

The UAW presented its economic demands to Chrysler-parent Stellantis on August 1, General Motors on August 2 and Ford on August 4, ahead of the September 14 expiration of the current four-year contracts.

GM is America’s largest automaker. It said the proposals "would threaten our ability to do what's right for the long-term benefit of the team."

The union had previously stated that it was seeking double-digit hikes in wages, defined-benefit pensions for all workers and shorter work weeks. The UAW reportedly wants to make all temporary workers at U.S. automakers permanent, achieve a substantial increase in paid time off and restore retiree health care benefits and cost of living adjustments.

On August 2, UAW President Shawn Fain expressed support for a 32-hour work week; a significant decrease from the traditional 40 hours.

Sources told Reuters that the union wants the companies to agree to the equivalent of a paid day off per week, at a time when trials of a four-day working week are increasing around the globe.

GM reportedly said that said a fair agreement would reward employees but also allow the company to retain its momentum now and into the future.

"We think it's important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition," GM said.

The UAW did not immediately comment on GM's statement.

Mr Fain said on August 1 that the union demands were its "most audacious and ambitious" proposals in decades. He added that the UAW was proposing to have the right to strike over plant closures and to eliminate a two-tier wage system under which veteran hires earn 25 per cent or more than newer employees.

Source: Reuters

(Link and quotes via original reporting)