With negotiations between the United Auto Workers and the Detroit automakers heading into the final weekend ahead of the Sept. 14 deadline, new proposals from General Motors and Ford came under scrutiny from the UAW, which insisted neither company was near meeting union demands.
Stellantis submitted its first offer Friday since the negotiations opened back in July.
Strike against all three looms
Meanwhile, the UAW continued to insist it would take the unprecedented step of striking all three automakers simultaneously if a deadline is not reached when the contracts expire on Sept. 14 at 11:59 p.m.
UAW President Shawn Fain has emphasized this week if there is no tentative agreement by the deadline the union will strike. Fain also has declined to name a target, which in the past has led to temporary contract extensions at the other companies. So far, union officials have declined to discuss extensions even as it focused more intensely in the bargaining with Ford.
As the discussions progressed, GM disclosed it had proposed a 10% increase in wages, which it described the largest since the 1999 contract and 67% higher than 2015 and 2019 — along with the two additional lump sum payments of 3%, which brings the total increase to 16%.
“We have progressed to more detailed discussions in our 2023 UAW/GM labor negotiations, and today we put an economic offer on the table to the union. Our offer has been developed considering everything in our environment including competitor offers and what is important to our team members.” GM said in a statement.
GM said its proposal included a “well-deserved” wage improvements that far exceed the 2019 agreement. “We still have work to do, but we will continue to bargain in good faith with the UAW and work towards an outcome that recognizes the vital role of our team members in GM’s success,” GM said in a statement.
Rejection
The UAW, however, was not impressed.
“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 that doesn’t come close to an equitable agreement for America’s autoworkers.
“GM either doesn’t care or isn’t listening when we say we need economic justice at GM by 11:59 p.m. on Sept. 14th. The clock is ticking. Stop wasting our members’ time. Tick tock,” Fain said.
Meanwhile, Ford touted a pay increase that was part of the 2019 contract. Nearly 8,000 UAW-represented Ford employees received a substantial raise this Labor Day. Employees will see the pay increase in their next pay stubs.
On average, these employees now earn $4.33 more per hour, or $9,000 a year. The increase could top $10,000 a year with overtime. The pay hikes were negotiated by Ford and the UAW in 2019 to shorten the time it takes workers to reach the average top wage rate of $32 an hour.
“These pay raises are an example of Ford’s commitment to improving the lives of our hourly workforce,” said Bryce Currie, Ford vice president, Manufacturing.
“The negotiating teams nicknamed this deal ‘23 Jump Street’ because in 2023 a significant number of UAW-Ford team members would see a jump in pay. And we are offering further improvements in the next contract.”
Top wages
Normally, growing into the top wage rate takes eight years, but with this agreement, 8,000 employees reached the top wage rates with as little as four years on the job.
The top wage rate differs by the specific type of job an employee does. On average, it is $32 per hour. With this move, 80% of all Ford’s UAW-represented hourly employees are now at the top wage rate. Those at the top wage rate are earning higher wages than 90% of all hourly employees in the U.S. auto industry, according to data from the Bureau of Labor Statistics.
Permanent hourly manufacturing employees were eligible for the pay increase if they were hired prior to the 2019 contract effective date and were earning at least $24.40 per hour as of Sept. 1, Ford said.
Ford has exceeded its job and investment commitments for the last three contracts, recently creating or retaining 5,600 jobs beyond 8,500 committed and investing $1.4 billion beyond $6 billion committed in the 2019 contract.
Ford also said it converted more than 14,100 employees from temporary employment to full-time permanent roles during the past four years — most of them ahead of schedule — and made all new hourly employees eligible for health care benefits from their first day on the job effective June 13, 2022.
Another offer
Stellantis’ COO Mark Stewart issued a statement about the company’s “first economic proposal” late Friday morning. The offer includes wage increases in each year of the deal totaling 14.5% with no lump sum payments.
Additionally, the deal builds in some “inflation protection,” with a $6,000 one-time inflation protection payment in the first year with an additional $4,500 in payments during the remaining three years of the deal.
Supplemental employees would get a wage increase from starting rate of $15.78 an hour to $20 an hour, which is a $4.22 an hour increase. Meanwhile in-progression employees would get an accelerated progression timeline from eight years to six years, potentially reducing the time that employees can reach the max wage rate by 25%.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” Stewart said in the statement. “It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”
