UAW President Shawn Fain addresses union members during a Solidarity Sunday rally in Warren, Michigan, Aug. 20, 2023
Michael Wayland / CNBC
DETROIT – The United Auto Staff and Detroit automakers remain far apart ahead of the union “likely” strategically striking the businesses after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday night.
The outspoken union leader laid out significant details of current proposals between the UAW and General Motors, Ford Motor and Stellantis regarding ware increase, cost-of-living adjustments, bonuses, job security and other recent demands from the businesses.
Fain also laid out general plans about how the union expects to strategically strike the Detroit automakers, if needed. He said the strike will start at a limited variety of locations, followed by others if needed.
“If the businesses proceed to bargain in bad faith … then our strikes are going to proceed to grow … We’ll hit where we want to hit,” Fain said Wednesday during a Facebook Live event.
Fain also said, “an all-out strike continues to be a possibility.” He also said if there are strikes, the union won’t negotiate Friday, as an alternative they may hold a 4 p.m. rally with U.S. Sen. Bernie Sanders, the progressive lawmaker from Vermont, in Detroit.
Key demands from the union have included 40% hourly pay increases, a reduced 32-hour work week, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, amongst other items on the table.
The businesses didn’t immediately respond for comment on Fain’s remarks.
Here’s where things stand on key issues, in keeping with Fain.
Wages
Fain said Ford has offered a 20% increase over the 4 years of the deal, followed by GM at 18% and Stellantis at 17.5%
Tiers
Ending tiers, or in-progression pay, where members are paid otherwise based on seniority, has been a top priority of the union for years.
Fain said each of the automakers has proposed cutting an eight-year grow-in period to top wages which are currently at greater than $32 an hour to 4 years.
COLA
Fain has demanded a return to cost of living adjustments, or COLA, which increase wages to maintain pace with inflation.
Fain said all firms have made “deficient COLA” proposals that either include lump sum payments, limit the amounts, or only kick in at certain levels that the union finds inadequate.
Ford has proposed a return to a COLA formula used up to now, which Fain said would supply estimated wage protection of lower than $1 over the term of the contract; proposals from GM and Stellantis would supply no protection, he said.
Profit-sharing
The UAW wanted to boost profit-sharing payments to offer staff $2 for each $1 million an organization spends on share buybacks, special dividends and increases to normal dividends.
Fain said the Detroit automakers have each offered “concessionary profit-sharing” formulas that lower the present standards, that are based on an organization’s North American profits.
The union said Ford’s formula would have resulted in 21% smaller checks over the past two years; GM’s would have resulted in 28% smaller checks over the past yr; and Stellantis would really like to base payments on “an unknown internal company attendance calculation.”
Profit-sharing was implemented lately as a way for the businesses to “reward” members in good times but not need to pay as hefty of bonuses when the businesses weren’t doing well.
Temps
Ending the usage of temporary staff, who might be paid lower wages and haven’t any job security, is one other longstanding UAW priority. Fain said that Ford has agreed to convert all current temporary staff with 90 days of continuous service to full-time staff, with full advantages, within the tiered progression.
Fain said that GM has offered “inadequate” advantages and “meager” wage increases for temps and that Stellantis’ proposal provides no path in any respect to full-time status.
Job security
The UAW has proposed what it calls a “Working Families Protection Program,” under which employees at a shuttered factory could be paid by the automakers to do local community-service work. All three automakers rejected the proposal, Fain said. Stellantis went further, proposing a unilateral right to shut and sell 18 facilities, including factories and parts depots, he said.
It is a developing story. Check back for updates.
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