UAW President Shawn Fain spoke to union members during a Solidarity Sunday rally in Warren, Michigan on August 20, 2023.
Michael Wayland / CNBC
UAW President Shawn Fain stated on Wednesday night that the United Auto Workers and Detroit automakers remain far from reaching an agreement, setting the stage for a “likely” strategic strike by the union after the 11:59 p.m. ET Thursday deadline.
Fain provided significant details about the current proposals between the UAW and General Motors, Ford Motor, and Stellantis, including wage increases, cost-of-living adjustments, bonuses, job security, and other new demands from the companies.
Fain also outlined the union’s plans for strategic strikes, which would begin at a limited number of locations and expand if necessary.
During a Facebook Live event, Fain stated, “If the companies continue to bargain in bad faith… then our strikes are going to continue to grow… We’re going to hit where we need to hit.”
Fain also mentioned the possibility of an all-out strike and announced that if strikes occur, the union will not negotiate on Friday but instead hold a rally with U.S. Senator Bernie Sanders in Detroit.
Key union demands include a 40% hourly pay increase, a reduced 32-hour work week, a return to traditional pensions, the elimination of compensation tiers, and the restoration of cost-of-living adjustments.
The companies have not yet responded to Fain’s remarks.
Here’s an overview of the current status on key issues:
Wages
Ford has offered a 20% increase over the four-year deal, followed by GM at 18% and Stellantis at 17.5%.
Tiers
Ending tiers or in-progression pay, where members are paid differently based on seniority, has been a top priority for the union.
The automakers have proposed reducing the grow-in period for reaching top wages from eight years to four years.
COLA
Fain is demanding a return to cost-of-living adjustments (COLA) that increase wages in line with inflation.
Ford’s proposal would provide estimated wage protection of less than $1 over the contract term, while the proposals from GM and Stellantis offer no wage protection.
This is a developing story. Check back for updates.
