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With a deadline approaching just before midnight on Thursday, contract negotiations between the United Auto Workers (UAW) union and Detroit's three major automakers—General Motors, Ford, and Stellantis—are at an impasse, as reported by the Associated Press (AP).
If no agreement is reached by the end of Thursday, union officials will not engage in negotiations on Friday and will instead join workers on picket lines. I Photo: UAW International Union Facebook
The UAW is demanding a 36% increase in pay. Initially, the union had requested a 40% pay raise over the duration of a four-year contract, or 46% when compounded annually.
Alongside general wage hikes, the union is advocating for the restoration of cost-of-living pay raises, the elimination of varying wage tiers for factory jobs, a 32-hour workweek with 40 hours of pay, the reinstatement of traditional defined-benefit pensions for new hires (who currently receive only 401(k)-style retirement plans), pension increases for retirees, and other demands.
If no agreement is reached by the end of Thursday, union officials will not engage in negotiations on Friday and will instead join workers on picket lines, according to Fain.
While the union is currently seeking a 36% pay increase, the automakers—General Motors, Ford, and Stellantis (formerly Fiat Chrysler)—have countered with offers that amount to roughly half of that raise.
Ford CEO Jim Farley stated that his company has put forth a generous wage offer, eliminated wage tiers, restored cost-of-living pay increases, and increased vacation time.
On Wednesday, Fain mentioned that the companies had increased their wage offers, but he still considered them insufficient. Ford proposed a 20% increase over 4½ years, while GM offered 18% over four years, and Stellantis proposed 17.5%.
These raises barely compensate for what Fain described as meager raises in the past. In a 2019 agreement, the union secured 6% pay raises over four years, along with lump-sum payments in some years and profit-sharing checks.
