Dive Brief:
- The United Auto Workers rejected Stellantis’ offer to raise wages 21% for the union autoworkers it employs, UAW President Shawn Fain said Sunday during an appearance on CBS’ Face the Nation.
- The union negotiated with General Motors and Ford over the weekend and with Stellantis on Monday. The union is waiting for new, formal counteroffers from all three automakers.
- According to news reports, the White House is sending a team to Detroit early this week to help end the UAW strike against the Big Three, which started Friday.
Dive Insight:
Amid the auto industry’s electric vehicle transition, the UAW is demanding cost-of-living adjustments, retiree benefit improvements, more paid time off, the ability to strike against plant closures, an end to tiered wages and benefits, and the return of defined benefit pensions and retiree healthcare.
But negotiations have been tense, with UAW members employed by GM, Ford and Stellantis overwhelmingly voting to authorize a strike if the sides couldn’t make a deal by the time the union’s 4-year labor agreements with the Big Three automakers expired on Sept. 14.
After failing to reach labor agreements with GM, Ford and Stellantis, the UAW began targeted strikes against the Big Three automakers Friday. Depending on how the negotiations proceed, the union plans to ask specific local chapters to strike rather than all of them at once.
GM and Ford’s most recent proposals would increase wages 20% over four and a half years. Since last week, the three automakers each proposed wage increases higher than their initial offers. However, their offers are still far below the 40% raise the UAW is seeking — though Bloomberg reported last week the union had lowered its wage increase demands to 36%.
The UAW made several labor concessions following the 2007-2008 financial crisis and subsequent bankruptcies of GM and Chrysler — now part of Stellantis. But the Big Three automakers made almost $250 billion in profits from 2013 to 2022, according to the UAW. Now, autoworkers want a larger slice of that pie and are prepared to strike to get what they want.
