GM sweetens wage and benefits offer to workers

Detroit – General Motors The United Auto Workers union is trying to stave off a looming strike Thursday with a new proposal that includes benefits like big pay raises, more vacation days and better benefits for retirees.

GM CEO Mary Barra called the proposal “compelling and unprecedented” and that it met many of the union’s demands but fell short of others, such as a $40 pay increase over four years in a deal the UAW sought. %.

GM announced deal details about nine hours before the UAW launched a targeted strike against GM, Ford and star If a deal isn’t done by Thursday at 11:59 p.m. ET.

“We are at a crossroads on the road to building a company that can sustain all of our lives for decades to come,” Barra said in an open letter. “Today, we propose a compelling, unprecedented The economic plan reflects the importance of this critical moment.”

GM’s latest offer matches several provisions of Ford’s proposal made public by the UAW last night. But it still fell short of the union’s public demands in several key respects.

• Salary: 20% salary increase during the four-year contract period and 10% salary increase in the first year. That’s an increase from 18% in GM’s last offer. The UAW is asking for a 40 percent raise over the life of the contract, which they say is consistent with the pay raises the Detroit automaker’s chief executive has received over the past few years.
• Get to the top wage faster: Under the current contract, newly hired workers receive incremental wage increases over time, topping out within eight years. GM’s proposal would shorten that period to four years. The UAW demands an end to the caste system.
• Inflation protection: GM’s offer includes unspecified cost-of-living protection for top wage earners, meaning wages will increase (at least in theory) to keep pace with inflation. Unions are demanding a return to the more generous system used in the past.
• Job security: GM pledged not to close any of its U.S. manufacturing or warehousing facilities during the contract period.
• Work-life balance: GM has previously proposed making Juneteenth a holiday. Up to five weeks of holiday and two weeks of parental leave are now available. That’s in line with Ford’s proposal Wednesday, which was the only one at the time to include parental leave. The UAW is asking for more time off, including a four-day work week.

“We are working urgently and making another increasingly stronger offer with the aim of reaching an agreement tonight,” Barra said in the letter. “Remember: in 2019 we had a strike but no People win.”

The union’s main demands include a 40% increase in hourly wages, a 32-hour reduction in workweeks, the restoration of traditional pensions, the elimination of pay grades and the reinstatement of cost-of-living adjustments.

Automakers warned Thursday about the potential impact of meeting UAW terms.

Ford Source It said if the current requirements were in effect, the automaker would have lost $14.4 billion over the past four years instead of recording a profit of nearly $30 billion. UAW President Shawn Fain appears determined to achieve these conditions.

The sources, who agreed to remain anonymous because discussions are ongoing, also pushed back against the UAW’s contention that members are not earning a living wage. They said the average compensation for Ford employees in their first year of union representation was $132,000, including $92,000 in cash and $17,500 in health insurance.

Ford’s recent proposals include a 20% pay increase over the four-year deal; a $6,500 ratification bonus; eliminating pay grades at two parts plants; cost-of-living adjustments; cutting in half the four-year period until full pay is earned; and others benefit.

This is a development story. Please check back for more details.