Breaking with the long-standing tradition of the “handshake ceremony” with the auto executives of the Big Three auto makers to open contract talks, United Auto Workers president Shawn Fain instead speaks with and does “members’ handshakes” with Stellantis workers at the Stellantis Sterling Heights Assembly Plant on July 12, 2023 in Sterling Heights, Michigan. The UAW opens auto contract negotiations with Stellantis today, Ford on July 14, and General Motors on July 18. (Photo by Bill Pugliano/Getty Images)
Bill Pugliano | Getty Images News | Getty Images
DETROIT – General Motors’ President Mark Reuss is criticizing the United Auto Workers (UAW) for spreading misinformation and using rhetoric during the ongoing contract negotiations. Reuss, in an editorial, highlighted the union’s public criticism of the company and the details of GM’s contract proposal. The proposal included 20% pay raises over the span of four years, improved time off, bonuses, and other benefits.
In a Wednesday column in the Detroit Free Press, Reuss stated, “We have delivered a record offer. That is a fact. It rightly rewards our team members, while positioning the company for success in the future. Often in these situations, the clouds of rhetoric can obscure reality.”
The UAW has not responded to the op-ed as of Wednesday morning.
GM made its last offer on September 14, just before the UAW initiated a “Stand Up Strike” at one assembly plant each for GM, Ford Motor, and Stellantis. UAW President Shawn Fain stated on Monday that the strikes would expand at noon on Friday unless there is “serious progress” in the negotiations. Currently, approximately 12,700 UAW workers from GM, Ford, and Stellantis are on strike.
What did GM offer?
According to Reuss, GM’s offer recognizes the contributions that represented team members have made and will make to the company. Under the deal, approximately 85% of current represented employees would earn a base wage of around $82,000 per year. This is significantly higher than the average median household income in areas where GM has major assembly plants.
GM’s current proposal is estimated to cost between $700 million and $1.2 billion over the life of the deal, according to Wells Fargo analyst Colin Langan. If GM were to give in to all the union’s demands, it could cost the company between $6 billion and $8 billion. These numbers are significant for the automakers, considering fixed costs.
Key demands from the union include hourly pay increases, a reduced workweek, the reintroduction of traditional pensions, the elimination of compensation tiers, the restoration of cost-of-living adjustments, and improved retiree benefits, vacation, and family leave benefits.
‘Untenable’
Reuss stated that the union’s full demands would be “untenable” for the company as it would not be sustainable in the long run. He emphasized the importance of continued investment in order to stay competitive in the industry.
Mark Reuss, executive vice president of global product development at General Motors Co. (GM), speaks next to a 2019 Chevrolet Silverado pickup truck during the 2018 North American International Auto Show (NAIAS) in Detroit, Michigan.
Andrew Harrer | Bloomberg | Getty Images
Reuss’ comments are the latest in a series of statements made by automotive executives as the UAW takes a firm stance during the negotiations. Ford recently released a statement fact-checking comments made by UAW President Shawn Fain. Ford CEO Jim Farley has also criticized Fain’s bargaining approach and expressed frustration with the ongoing strike.
