Detroit Three contract offers rejected by auto workers, prepared for strike

Detroit Three contract offers rejected by auto workers, prepared for strike

Sept 8 ⁢(Reuters) – United Auto Workers President Shawn⁤ Fain said on⁣ Friday the union representing 146,000 workers wants a deal ‍to ⁤avoid walkouts at the Detroit‍ Three automakers but expects to go on strike​ against all of them next week if they do not improve their⁢ contract offers.With contracts set⁣ to expire next Thursday at 11:59 p.m. ET (0359 GMT next‌ Friday), Fain said the union had ⁣rejected General Motors (GM.N), Ford (F.N) and Chrysler parent company ⁣Stellantis North America ⁢(STLAM.MI) and remained far apart.
“We want a deal. We are ready for a ⁢deal. But it’s got to be a deal that honors our sacrifices and contributions,” Fain said on Facebook Live. “If we hit 11:59 p.m. on Thursday … there will be a strike at all three, if ‍need be.”Talks are expected to continue through ‍the weekend.
The union’s self-described “audacious” demands include a 46% pay hike over four years including ‍a 20% immediate wage increase, defined-benefit pensions for all workers, 32-hour work ⁢weeks and additional cost-of-living ⁣hikes.
Contract talks between the UAW and the Detroit automakers have gone to the ⁤strike deadline and beyond in years past. The pace of the negotiations ‌has picked up since Aug. 31 when the union filed unfair labor practice complaints with U.S. ‌labor⁣ regulators accusing GM and Stellantis of refusing to make timely economic proposals.
With a⁣ trash can labeled ‍”Big Three Proposals” behind him, ⁤Fain said the​ company offers were inadequate – although he‌ noted movement on some points. The ‌automakers started the talks rejecting ​restoration of cost-of-living adjustments (COLA)‍ pegged to inflation. Now, Ford has proposed what Fain called a “deficient” cost-of-living adjustment formula.
“Suddenly COLA is ​back on the table,” Fain⁢ said.
Stellantis said on Friday it offered U.S. hourly workers a 14.5%⁣ wage hike over four⁢ years ‍but no lump sum payments.
“This ​is movement,” ⁢Fain said. “We went‌ from 9% at Ford to 14.5% at Stellantis.”But​ the Stellantis proposal is still‍ “deeply inadequate,” Fain added.
The UAW said the GM and Ford offers ​would ‌change the formula for calculating profit-sharing, and​ if it had ​been in effect‌ last year GM workers would have received 29% less and Ford workers 21%.
GM said on Thursday it had offered workers a 10% wage hike and two additional 3% annual lump sum payments over four years. Stellantis is not offering⁣ additional lump sum ⁣payments.
Last week, Ford (F.N) said it had offered a 9% wage increase through 2027 and 6% lump‌ sump⁣ payments. Company officials confirmed on Friday that Ford boosted its offer⁣ to 10% in wage ‍hikes along with the lump sum payments.
The Stellantis offer is similar to those made by ‍GM and Ford. It would ​hike ‍minimum ‍pay for temporary ​workers to $20 an hour ‍- up $4.22 an hour – and reduce the time necessary to reach top wages for permanent autoworkers⁣ from eight years to six ⁢years.
“This is a⁤ responsible and strong offer that positions us to continue providing good jobs ‌for⁤ our employees today and in ‍the next…

Article from www.reuters.com

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