
UAW President Shawn Fain broke with a long-standing tradition of having a “handshake ceremony” with auto executives from the three major automakers to kick off contract negotiations and instead spoke to Stellantis workers and conducted “Member Handshake” Sterling Heights Assembly Plant in Sterling Heights, Michigan on July 12, 2023. The UAW will begin auto contract negotiations with Stellantis today, July 14 and July 18 with Ford and General Motors. (Photo by Bill Pugliano/Getty Images)
Bill Pugliano | Getty Images News | Getty Images
DETROIT — As the United Auto Workers union enters its sixth day of targeted strikes against Detroit automakers, General Motors President Mark Reus criticized the union leadership for its rhetoric and “spreading of misinformation” during ongoing contract negotiations.
In an editorial, Royce focused on the union’s public attack on the company and the content of GM’s “record-setting” contract proposal last week, which included a 20% pay increase over the four-year deal as well as improved leave, bonuses and other benefits.
“As the past has made clear, no one wins in a strike,” Royce said in a column for The newspaper on Wednesday. Detroit Free Press. “We made a record-setting offer. It’s true. It rightfully rewards our team members while setting the company up for future success. Often in situations like this, a cloud of rhetoric can obscure reality.”
The UAW had not responded to the op-ed as of Wednesday morning.

GM’s last offer came on Sept. 14, when the union launched a “stand-up strike” at a GM, Ford and Stellantis assembly plant. UAW President Sean Fein said on Monday that the strike would expand at noon on Friday unless there was “significant progress” in negotiations.
Currently, about 12,700 UAW workers are on strike at GM’s mid-size truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger mid-size pickup and Bronco SUV plant in Wayne, Miss.; and Stellantis’ plant in Tolay, Ohio. Lots of factory Jeep Wranglers and Gladiators.
What does GM offer?
Reuss said GM’s proposal recognized “the many contributions to our company’s past, present and future by the team members we represent” but was opposed by the union.
Reuss said that under the agreement, about 85% of current employees will receive a base salary of about $82,000 per year. By comparison, the median household income in the nine regions where GM has major assembly plants is $51,821, he said.

Wells Fargo’s Colin Langan said in a Sept. 15 investor note that GM’s current proposal is expected to cost $700 million to $1.2 billion over the life of the deal.Langan told CNBC on Wednesday that the company would lose $6 billion to $8 billion as a result of the agreement if it gave in to all of the union’s demands. “Gaga box.”
“There’s still a long way to go. We’re also talking about fixed costs. That’s a real pain point for automakers,” Langan said, calling it an “important number” for the company.
The union’s main demands include a 40% increase in hourly wages; a 32-hour reduction in work weeks; a return to traditional pensions; the abolition of pay scales; and the reinstatement of cost-of-living adjustments. Other items on the table include increased retiree benefits and better vacation and family leave benefits.
“Untenable”
Royce said on Wednesday the union’s sweeping demands were “untenable” or unsustainable for the company.
“If we don’t continue to invest, we will quickly lose ground. Our competitors across the country and around the world, most of whom are not unions, will immediately seize the opportunities we will provide them,” he said.
Mark Reuss, General Motors Company’s (GM) executive vice president of global product development, speaks next to the 2019 Chevrolet Silverado pickup truck at the 2018 North American International Auto Show (NAIAS) in Detroit, Michigan.
Andrew Haller | Bloomberg | Getty Images
Royce’s comments are the latest from auto industry executives as UAW Taking a strategically aggressive approach to the talks, leaving little leeway in demands.
Late Monday, Ford released a lengthy statement fact-checking Fein’s comments, including autoworker wages, company profits and stock buybacks.
Ford CEO Jim Farley said last week that the company “is now bankrupt” under the union’s current proposals. He also criticized Fein’s bargaining style.
“We’ve never seen anything like this; it’s frustrating,” Farley told CNBC’s Phil LeBeau last week before the strike. “I don’t know what Sean Fearn is doing, but he’s not going to negotiate this contract with us because it’s expiring.”

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