GM provides wage boosts, large rewards in UAW agreement battle

UAW President: 'Wages aren't the problem, our conditions aren't the problem, it's corporate greed'

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UAW Local 5960 member Kinethia Black fills the brakes of a 2022 Chevrolet Bolt EUV throughout automobile production on Thursday, May 6, 2021 at the General Motors Orion Assembly Plant in Orion Township, Michigan.

Photo by Steve Fecht for Chevrolet

DETROIT– General Motors on Thursday used its biggest four-year wage boost in years as part of a brand-new agreement proposition to the United Auto Workers, as the car manufacturer tries to prevent another pricey strike by its unionized labor force.

The UAW’s president, nevertheless, called the deal “insulting.”

The wage boost for the majority of GM’s approximately 46,000 UAW-represented employees would be 10%, while more recent, or in-progression, staff members would be qualified for as much as a 56% boost in salaries over the 4 years of the offer, the business revealed Thursday after consulting with union leaders and arbitrators. Temporary employees, who supplement full-time staff members, would likewise get 20% wage increases to approximately $20 an hour.

Under the existing pay structure, UAW members begin at about $18 an hour and have a “grow-in” duration of 4 years to reach a leading wage of more than $32 an hour.

GM’s proposed agreement likewise consists of 2 extra 3% lump-sum payments leading to an overall wage boost of 16%; $5,500 ratification benefit; $6,000 one-time inflation-recognition payment; and $5,000 in inflation-protection rewards over the life of the contract, which in-progression staff members are qualified to get.

Despite the proposed wage boost being the biggest under a UAW agreement considering that 1999, it still falls far except the union’s needs of a 40% per hour pay boost, a lowered 32- hour workweek, a shift back to conventional pensions, removal of settlement tiers, and repair of cost-of-living modifications, to name a few products on the table.

UAW President Shawn Fain was not impressed by GM’s deal, calling it “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.”

“GM either doesn’t care or isn’t listening when we say we need economic justice at GM by 11:59pm on September 14th. The clock is ticking. Stop wasting our members’ time. Tick tock,” Fain stated in an emailed declaration.

The proposition from General Motors comes a week after the union submitted unreasonable labor practice charges versus GM and Stellantis to the National Labor Relations Board for presumably not bargaining in great faith or a prompt way.

Contracts for approximately 150,000 automobile employees with GM and crosstown competitors Ford Motor and Stellantis end after 11: 59 p.m.Sept 14.

A 40- day strike versus GM throughout the last round of settlements in 2019 caused a production loss of 300,000 lorries, the business stated at the time. It likewise cost the automaker $3.6 billion in revenues, GM stated.

Fain has stated a strike isn’t the objective, however the sides stay far apart when it pertains to essential needs.

GM launched information of its agreement proposition ahead of the UAW doing so, breaking pattern with Ford and Stellantis, which waited up until the union did so. It most likely did so to get ahead of any remarks concerning the offer by Fain, who condemned previous deals from Ford and Stellantis throughout Facebook Live occasions.