UAW auto strike negotiations: Where things stand

UAW President Shawn Fain speaks to union members during the Unity Sunday rally in Warren, Michigan, August 20, 2023

Michael Weiland/CNBC

DETROIT — UAW President Sean Fein said late Wednesday that the UAW and UAW companies are “probably” ahead of a strategic strike against the companies after Thursday’s 11:59 p.m. ET Detroit automakers remain deeply divided.

The outspoken union leader laid out key details of the current proposal between the UAW and the UAW. General Motors, Ford and star Regarding merchandise increases, cost of living adjustments, bonuses, job security and other new requirements from the company.

Fein also laid out a master plan for how the union could strategically attack the Detroit automakers if needed. He said the strike would begin at a limited number of locations and could be followed by other locations if necessary.

“If these companies continue to bargain in bad faith … then our strikes will continue to increase … and we will hit where we need to hit,” Fein said during a Facebook Live event on Wednesday.

Fein also said that “a general strike is still possible”. He also said that if a strike occurs, the union will not negotiate on Friday and will instead hold a rally with U.S. Sen. Bernie Sanders, a progressive congressman from Vermont, in Detroit at 4 p.m. .

The union’s main demands include a 40% increase in hourly wages, a 32-hour reduction in working hours per week, the restoration of traditional pensions, the elimination of compensation levels and the reinstatement of cost-of-living adjustments. .

The companies did not immediately respond to requests for comment on Fein’s remarks.

That’s where the key issues stand, Fein said.

salary

Fain said Ford offered a 20% raise over four years of the deal, followed by an 18% raise from General Motors and a 17.5% raise from Stellantis.

grade

Ending grade or progression pay, where members receive different pay based on seniority, has been a priority for unions for years.

Fain said each automaker is proposing to shorten the eight-year growth period to four years from current wages of more than $32 an hour.

Cola

Fein is calling for the reinstatement of the cost-of-living adjustment (COLA), which raises wages to keep pace with inflation.

Fein said all the companies had put forward “flawed Coke” proposals that either included a one-time payment, capped the amount or started only at certain levels that unions deemed inadequate.

Ford proposed reverting to the Coke formula it used in the past, which Fein said would provide an estimated wage protection of less than $1 over the life of the contract; GM and Stellantis’ proposals would not provide any protection, he said.

profit sharing

The UAW wants to strengthen profit-sharing payments, providing $2 to workers for every $1 million companies spend on stock buybacks, special dividends and increases to regular dividends.

Fein said the Detroit automakers each offered “preferential profit-sharing” packages that lowered the current standard, which is based on the company’s North American profits.

The union said Ford’s formula would reduce check sizes by 21% over the past two years; GM’s checks would be 28% smaller than last year; and Stellantis wants to base payments on “unknown internal company attendance calculations.”

Profit sharing, implemented in recent years, is a way for companies to “reward” members when the economy is good, but without having to pay out hefty bonuses when the company is doing poorly.

temporary

Ending the use of temporary workers, who pay lower wages and have no job security, is another long-term priority of the UAW. Fein said that Ford has agreed to convert all current temporary workers who have worked for 90 consecutive days to full-time employees with full benefits on a graduated basis.

Fein said GM offers “inadequate” benefits to temporary workers and “meager” pay raises, while Strantis’ proposal offers no path to full-time status at all.

employment security

The United Auto Workers has proposed what it calls the Working Families Protection Plan, under which automakers would pay employees at shuttered plants for local community service work. Fein said all three major automakers rejected the offer. Stellantis went a step further, proposing unilateral authority to close and sell 18 facilities, including factories and parts warehouses, he said.

This is a development story. Please check back for updates.

UAW president talks auto strike: Lots of work to do in 48 hours

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