General Motors made what it called a "record offer" to the United Auto Workers union Friday amid an ongoing strike against the Detroit Three automakers.
Under the new wage proposal presented to the UAW, all of GM’s union represented autoworkers will receive an immediate wage increase upon its ratification. In addition, most GM full-time employees will eventually see their wages increase to $40.39 per hour, or roughly $84,000 a year by the end of the agreement’s term in Sept 2027.
“The offer on the table is the most significant that GM has ever proposed to the UAW,” GM said in a statement Friday.
As part of GM’s latest wage proposal, full-time union represented autoworkers making $17 an hour will see their wages more than double over the life of the new labor contract. These employees will receive immediate raises to $24 per hour upon ratification. In September 2024, their hourly wages will again increase to $27.54 an hour.
Wages will continue to incrementally increase each September through 2027, eventually reaching $40.39 per hour. GM’s union represented employees making $19 an hour will see similar wage increases over the next four years, also reaching $40.39 by Sept. 2027.
Other proposed benefits include cost of living adjustments and more paid time off, as well as a faster timeline to reach top wages. GM’s temporary workers will get a wage increase of 26% to $21 per hour.
The latest offer from GM aims to end the strike that has hobbled its manufacturing operations since last month. As of Oct. 10, GM had roughly a 60-day supply of some new vehicles, making it the most vulnerable out of the Big Three automakers if the UAW strike drags on. GM’s Chevrolet and Cadillac brands, which sell some of GM's most profitable vehicles, had the lowest inventory levels among domestic brands.
“It is time for us to finish this process, get our team members back to work and get on with the business of making GM the company that will win and provide great jobs in the U.S. for our people for decades to come,” GM said in a statement.
GM's latest offer comes after the company reached a tentative agreement on Oct. 10 with Unifor, the union representing its autoworkers in Canada.
Ford has not yet not reached an official deal with the UAW. The Dearborn, Michigan automaker made its seventh offer to the UAW on Oct. 3 that would run through April 30, 2028. It includes pay raises of more than 20% for full-time hourly employees, the end of tiered wages, cost-of-living adjustments, a reduced timeline to reach top wages, increased 401(k) contributions and more paid time off.
But the offer was not enough for the UAW.
The UAW directed its members to strike at Ford’s profitable Kentucky Truck Plant on Oct. 12. The walkout of roughly 8,700 workers at Ford’s truck plant last week was the largest since the strike began last month.
On Monday, Ford Executive Chair Bill Ford warned that the work stoppage will not only hurt the company and its employees, but the entire U.S. auto industry.
“If it continues, it will have a major impact on the American economy and devastate local communities,” said Ford. “The supply base is very fragile, and will start collapsing with an expanded strike.”
GM’s new wage offer to the UAW comes ahead of a planned announcement from the union’s president Shawn Fain scheduled for 4 p.m. EDT on Friday. With the Big Three still negotiating with the UAW, it’s unclear if the union plans to announce more strike targets.
