Dive Brief:
- The United Auto Workers union will strike against any or all Big Three automakers if they cannot reach a labor agreement by Sept. 14, UAW President Shawn Fain said during a Facebook Live event Friday.
- All the proposals from General Motors, Ford and Stellantis offer significantly less generous wages and benefits than the UAW is demanding, Fain said.
- Fain, who has taken a more aggressive stance during negotiations than past leaders, potentially ruled out an extension of the negotiations.
Dive Insight:
Fain shared details about where things stand between the UAW and the Big Three on several key issues. He said Thursday’s deadline is firm, “not a reference point.”
“We aren't going to stand by and allow you to continue to drag out negotiations like you did in the past,” Fain said.
The union is demanding cost-of-living adjustments, more paid time off and the ability to strike against plant closures. It has also proposed ending tiered wages and benefits, including 90 days for members to reach the maximum wage rate, as well as restoring pensions and retiree healthcare.
GM, Ford and Stellantis each rejected the proposal, with Ford offering a 5-year progression to the top rate, while GM and Stellantis called for six years. The Big Three automakers also rejected the UAW’s pension and retiree healthcare demands.
GM and Stellantis rejected COLAs outright, while Ford offered a COLA that would provide an estimated 0% wage adjustment during the proposed 4-year labor agreement, the UAW said. However, GM and Stellantis would provide lump-sum payments to some employed UAW members to cover inflation costs.
The UAW also wants $2 in profit sharing for every $1 million spent on share buybacks, special dividends and dividend increases. Stellantis rejected the proposal entirely, while GM and Ford offered significantly less generous profit-sharing arrangements.
UAW members have also sought greater job protections, but all three automakers rejected the union’s proposal to be able to strike against plant closures. Ford’s proposal would allow the automaker to outsource any UAW-related work at any time, the union said.
Additionally, the union wants greater work-life balance for its members, including more paid time off and holidays. Ford offered two weeks of paid parental leave but declined to make Juneteenth a paid holiday for UAW members. GM and Stellantis agreed to make Juneteenth a paid holiday but rejected the UAW’s other work-life demands.
All three automakers denied the UAW’s request for better retiree pay.
Late last month, the UAW accused GM and Stellantis of unfair labor practices, filing a complaint with the National Labor Relations Board over its contract talks with the two automakers. However, it did not file a complaint against Ford.
“Despite talking about how offended they were and how the charges were frivolous, suddenly they got their acts together and offered up proposals to our members,” Fain said.
Ford submitted a new proposal to the UAW in late August, offering a 9% general wage increase — far below the 46% increase the union seeks. The UAW submitted a counterproposal on Sept. 6.
On Sept. 7, the UAW balked at GM’s latest proposal, which includes a 10% wage increase for most employees. Stellantis followed up with its proposal on Friday, offering employed UAW members a total wage increase of 14.5% over four years, which the union rejected.
“I want to be clear. We want a deal. We’re ready for a deal,” Fain said. But ”we aren’t going to lay down and take whatever scraps they give us.”
