GM Offers UAW 16% Pay Increase Plus Other Compensation

By
Keith Cornett
-
23
53743

GM Offers UAW 16% Pay Increase Plus Other Compensation

Photo Credit: Keith Cornett


We know that many of you have been concerned about the latest GM/UAW negotiations and if that will lead to a strike. It’s our opinion that a strike is already preordained, so we wanted to do a quick update on today’s negotiations.

According to Automotive News, General Motors presented the UAW with a contract offer that would raise hourly worker’s pay by 16% including bonuses over the next four years. It also included a $5,500 ratification bonus, $5,000 inflation protection bonus, and will include Juneteenth as a paid holiday.

“Our offer includes well-deserved wage improvements that far exceed the 2019 agreement and reward you for your hard work,” GM said in a letter to workers. “We still have work to do, but we wanted to make this offer to show our good faith efforts to keep the process moving.”

Negotiations had already taken negative turn after the UAW filed charges against GM and Stellantis over unfair labor practices with the National Labor Relations Board, saying the two automakers “are refusing to bargain in good faith over mandatory subjects of bargaining including but not limited to wages and benefits.”

So it was no surprise to see UAW president Shawn Fain dismissing GM’s offer immediately and calling it inadequate.

“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” Fain said.

Automotive News says the GM contract offer appears to be more generous than the one submitted by Ford last week. The magazine writes:

“Both proposals include identical ratification bonuses and 20 percent raises for temporary workers. Ford said it would give workers 15 percent more pay, including bonuses, as well as cut the grow-in period to six years. The union said Ford’s offer would not recognize Juneteenth as a holiday.”

In a previous article from Automotive News, they took a look at several different strategies the UAW may incorporate if they decide to strike.

While the UAW has never attempted a national strike against the Big 3 automakers at the same time, that reportedly is on the table as Shawn Fain has yet to pick a target company to go first. In the 2019 strike, the UAW targeted GM first.

However a national walkout would significantly deplete the UAW’s $825 million strike fund should the national strike persist. During a strike, each member gets $500 a week plus health care costs.

Another strike strategy would be to target select factories for a walkout, thereby creating a cascading effect where key parts become unavailable. It’s said that the three GM factories targeted for a bottleneck strike could be the Romulus Powertrain facility in Michigan which makes V6 engines and 10-speed transmissions for the Silverado and GMC Sierra. The Toledo transmission facility in Ohio would also be targeted, as would the Marion Metal Center in Indiana that makes sheet metal parts for GM vehicles.

The downside for the UAW on a targeted strike is that only individual local unions are allowed to strike and then only over local matters, and not companywide interests such as a new contract.

“Let me assure you, the VPs, myself, all the leadership at this level, the bargaining committees, we understand how to manage this,” UAW President Shawn Fain said in response to a worker’s question on the issue during a Facebook livestream in early August. “We have a plan. Come Sept. 14, if these companies don’t deliver, they’re going to see that plan unfold.”


Source:
Automotive News

Related:
Corvette Assembly Plant’s Local UAW Votes Yes for Strike Authorization
2024 Corvette E-Ray Ordering is Delayed
Corvette Assembly Plant and UAW to Begin Local Bargaining Negotiations

Subscribe Now:


 



-

RELATED ARTICLESMORE FROM AUTHOR

23 COMMENTS

  1. “Your offer (which is significantly better than most area jobs) is not enough”

    Typical union dirtbags.

    And people wonder why the prices of UAW-produced cars keep going up and up…with no corresponding uptick in quality.

  3. Many Americans don’t get a 16% raise or even get that corner office. Blame this on runaway government spending like billions to a bs proxy war and the non government federal reserve printing trillions of dollars to keep juicing the equities market. Car prices will get out of sight and will continue this inflation cycle until the debt market implodes in the near future. Game over then and you can have all the C8s you want.

  4. Funny how it’s always the outsiders with opinions about other’s lives. If I could only go to these people jobs and tell them you don’t deserve a raise, just live with inflation and staying at the same level you were 20 yrs ago.

  5. Don’t give in gm there already overpaid let them go on strike and see how long the union can afford to pay them there 500 a week they’ll come back begging for the offer you just offered them it’s ridiculous that they want 46% plus 32 hours work week but get paid for 40 let them sit on the picket line they can’t pay there bills that way they’ll come running back don’t give in gm

  7. Look you all just think that’s a hourly pay increase all this presented to the American people like wow it’s a big increase they don’t tell that’s over a 6 yr span of lump sum bonuses NOT a Hourly increase I’ve worked for Ford 25 yrs 15 yrs no raise, extreme heat, nasty environment, I’ve had shoulder surgery knee replacement and I still work everyday 50-60 hrs a week
    Auto workers account for less than 7% Of the price of a vehicle
    You think unions are the reason vehicles cost so much your thinking is WRONG PUT YOURSELF IN MY SHOES A UNION DIRT BAG AS SOMEONE called us if you any of these companies care about you the consumer better think again because they do not care about their employees that break their back working for them

  8. Oh and BTW NO RAISE LAST 15 yrs Ford went from 55 jobs per hr to now 70 trucks jph us workers pay is the same 15 yrs ago but vehicles price increased and u blame unions for increasing vehicle prices and u blame quality on the union WITHOUT THE UAW THE QUALITY WOULD BE TERRIBLE

    And there is nothing at all that supports that the UAW is to blame
    The UAW STILL BELIEVES IN THE AMERICAN DREAM

    I CHALLENGE ANYONE that’s against the UAW to do my job for awhile

  9. I only received a 1.5% increase and my insurance went up, so I really only received a 1% increase this year. And over the past 3 years, inflation has gone up 16.9% and I have received a total of 5%! What’s wrong with that picture.
    In Math terms that’s 16.9%>5%.
    I would be so happy to get a 16% increase.

  10. Robert B. The problem with your statement is you except the 1.5% instead of fighting for what your worth. Unless that is all your worth. The middle class in this country are always fighting to barley live check to check. So it’s about time someone stands up to the billionaires and billion dollar companies that are made off the hard work of the middle and lower classes in this country.

  11. These workers are being selfish. Are they going to share their big bonus checks or raises with the people that work in other factories that make components for GM? This strike will shutdown so many other plants than just GM Ford or Stelantis. Other non union shops’ workers are hanging by a thread already with meager wages they make. Hopefully unemployment will keep feeding these families while all these union workers sit on their ass and pout about what’s fair for them.

  12. Look at these stupid people saying they’re over paid! They’re not paid enough! You dummy’s better get a clue about corporate greed!

  16. Quick misleading people it’s a 10 percent wage increase and two 3 percent one time bonuses

  17. Employees deserve a lot better contact than they have now . Hold firm UNION , don’t let them pressure y’all now

  18. You actually want to blame the prices of vehicles going op on the union….corporation greed…as far as asking for the moon during negotiations when you sell you house or car…dont you inflate price to get what you can…Proud U.A.W. member for 24 years

  19. Typical media with misleading headline. You people are so smart so please tell me how a 10% pay increase with two 3% lump sums equals a 16% raise ? After the 4 year contract it still only equals a 10% raise and inflation is higher than that. Also the ones blaming the car prices on wages the workers are getting paid are foolish. The car prices have been going up for years while wage decrease due to inflation so please tell me how that is the cause of prices.These big corporations pay off these web pages and media and you sheep believe it all.

  20. It is not a 16% raise to start with. Its 10% over 4yrs cash bonus doesn’t not help but for that year alone. Vehicle price is absolutely not tied to hourly wages. Salary employees wages far exceed the hourly workers but only the blue collar is scrutinized! You cannot expect people to literally have less every year and not say enough is enough. That time is now. Line in the sand!

  21. Union strong ! Hold the line! Fight for your Raises, if you don’t get it now you won’t get anything. GM ,Ford & Chrysler are being greedy. Have you seen what these executives make a year ? What they pay their employees? Come on man a basic car from one of these companies is 35k to 50k and trucks are even more. Give up on the juneteenth holiday give up on the 32 hour work week ! But get your wage increase screw the bonus they can shove that 1 time lump up there @$$! I definitely hope you get more $$$ per hour and pensions for your retirement! That is owed to you for busting your butt at work building cars.

  22. Most non union workers will talk a lot of junk about what we are asking for. If they were to vote for a union in their shop or plant they would understand. I worked for non union shops as well as union shops. Union employees don’t let the company get away with the stuff non union shops get away with, like lower pay, disciplinary actions and specific benefits, etc. When you think about the millions that these corporations CEO’s, presidents and management employees make pushing a pen and tapping on a computer keyboard compared to what production employees make. Not to mention the corporate profits and gains they make. You ever heard of corporate greed? We deal with physical “on the job” injuries and repetitive body stress that they don’t have.

  23. I work in a different field . IMO if you don’t put yourself in those guys shoes, stop making any comments that might hurt their buttom line. When you get to a doctor with your kid, you want that md to be the best ( $$$), when you travel by plane you hope that the guy who’s flying the plane and literally has your life in his hands is paid well and has a clear mind …so same here…
    When you drive your suv at 80 ml/ hr you want to be sure that that brake or nut is done right and not by someone that says ” it’s OK, it will be fixed in service soon anyway “.
    Be supportive or soon you will drive BYD made by Chinese Government same like IPhone.

Comments are closed.