General Motors (GM) is making a new offer to the United Auto Workers (UAW) union in an effort to avoid an upcoming strike. The offer includes a 20% increase in wages, additional vacation days, and improved benefits for retirees, among other perks.
The proposal, described by GM CEO Mary Barra as “compelling and unprecedented,” addresses many of the union’s demands but falls short in some areas, such as the UAW’s request for a 40% pay increase over the four-year deal.
GM released the details of the offer just hours before the UAW’s deadline for initiating targeted strikes against GM, Ford, and Stellantis if no agreements were reached.
Barra stated in a public letter, “We’re at a crossroads on our path to building a company that can sustain all of us for decades to come. Today, we put a compelling and unprecedented economic package on the table that reflects the significance of this critical moment.”
GM’s latest offer matches several provisions in a recent proposal from Ford, but it still falls short of the UAW’s public demands in several key areas.
Automakers have warned about the potential effects of meeting the UAW’s terms. Ford sources said the company would have suffered a $14.4 billion loss over the past four years, instead of recording nearly $30 billion in profits. UAW President Shawn Fain remains determined to achieve the union’s demands.
Sources also pushed back on the UAW’s claim that members aren’t earning a living wage, stating that the average compensation for first-year UAW employees under Ford’s proposal would be $132,000, including cash and health care coverage.
Here are the main points of GM’s offer:
- Wages: A 20% increase over the four-year term of the contract, with a 10% raise in the first year.
- Faster path to top pay: Newly-hired workers would reach top-level wages in four years instead of eight.
- Inflation protection: GM’s offer includes cost-of-living protection for maximum wage earners.
- Job security: GM promises not to shut down any U.S. manufacturing or warehousing facilities during the contract.
- Work-life balance: GM offers up to five weeks of vacation and two weeks of parental leave.
“We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight,” Barra said.
The UAW’s key demands include hourly pay increases, a reduced workweek, a shift back to traditional pensions, the elimination of compensation tiers, and the restoration of cost-of-living adjustments.
Ford’s most recent proposal includes a 20% wage increase over four years, ratification bonuses, the elimination of wage tiers, and other benefits.
This is a developing story. Please check back for additional details.
