WASHINGTON: General Motors said on Thursday it has offered workers a 10% wage hike and two additional 3% annual lump sum payments over four years in its offer to the United Auto Workers union ahead of the Sept. 14 contract expiration.
Last week, Ford said it had offered a 9% wage increase through 2027 and 6% lump sump payments, much less than the 46% wage hike being sought by the union. The UAW has said 97% of members voted in favor of authorizing a strike if agreement is not reached.
GM said the wage hike is the largest proposed since 1999. It is also offering a $6,000 one-time inflation-related payment and $5,000 in inflation-protection bonuses over the life of the agreement, along with a $5,500 ratification bonus.
UAW President Shawn Fain said GM’s offer was “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.”
GM said that under its offer, current temporary employees will receive a 20% increase to $20 per hour wage and it would shorten the time it takes to get to the maximum wage rate for permanent employees - mirroring proposals from Ford. GM President Mark Reuss said in a video posted on Thursday “we need a fair contract that both rewards our employees and protects the long-term health of our business.” A UAW strike that shuts the Detroit Three manufacturers could cost carmakers, suppliers and workers over $5 billion, Michigan-based Anderson Economic Group estimated.
With new car inventories tight, consumer experts have said that could translate into higher car prices - an important component of inflation.
Last week, the UAW filed unfair labor practice charges with the National Labor Relations Board against GM and Stellantis saying they refused to bargain in good faith. The union’s demands include a 20% immediate wage increase followed by four 5% annual wage hikes, defined-benefit pensions for all workers, 32-hour work weeks and additional cost of living hikes.
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