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Time is running out to prevent a strike at America's three unionized automakers, and there remains a significant gap between the United Auto Workers (UAW) union and the companies, as reported by Chris Isidore for CNN.
GM estimated the cost of the UAW's six-week strike in 2019 at $2.9 billion. I Photo: Jason Mrachina Flickr
The contracts with all three automakers are set to expire at 11:59 pm on Thursday. UAW President Shawn Fain insists that the union is prepared to strike on Friday at any company that has not reached a tentative agreement by then.
He acknowledges that the union's demands are "ambitious" but believes they are justified, considering the strong profits the automakers have reported in recent years.
The union is demanding a 20% raise initially, followed by four additional raises of 5% each. This would result in a 46% increase in hourly pay over the four-year duration of the contract.
According to the UAW, GM and Ford are proposing 10% increases in the hourly wage rate over the next four years.
Stellantis, on the other hand, which manufactures cars under the Jeep, Ram, Dodge, and Chrysler brands for the US market, is offering 14.5% raises.
In comments to members on Friday, Fain referred to those offers as "insulting," given the substantial profit increases reported by the automakers in recent years. The UAW is also seeking the reinstatement of traditional pension payment plans and retiree healthcare for all UAW members.
Workers hired before 2007 still enjoy these benefits, while those hired since then, the majority of hourly workers, do not. Additionally, the union is advocating for a return to cost-of-living adjustments (COLA) to protect members from inflation.
A strike would be costly for the automakers. GM estimated the cost of the UAW's six-week strike in 2019 at $2.9 billion. The Biden administration has been closely monitoring the negotiations. On Labor Day, President Biden expressed his belief that a strike could be avoided.
