For weeks General Motors executives have indicated they want to avoid a repeat of the 40-day strike that shut the company down in 2019 and they are prepared offer blue-collar employees a pay increase as part of the deal being negotiated with the United Auto Workers
But the “members demands” calling for a substantial pay increase, a shorter work week and restoration of benefits such as a defined pension plan presented by UAW President Shawn Fain seemed to touch a nerve at GM, which reverted to the language characteristic of past confrontations with the union.
Contract changes could jeopardize future, GM says
“The breadth and scope of the Presidential Demands, at face value, would threaten our ability to do what’s right for the long-term benefit of the team. A fair agreement rewards our employees and enables GM to maintain our momentum now and into the future,” GM said in a reply to the union, which also extrapolated the demands would raise wages by more than 40% over the four-year contract term.
“It’s an exciting time to be part of GM,” GM added in its statement, “As our entire manufacturing team can benefit from leading in the EV transformation. We think it’s important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition,” GM added.
“Our focus is on doing what is right for our team members, our customers and the business. And we expect increased wages for our represented team members,” GM said, adding billions of dollars in the future of U.S. manufacturing.
Fain, who outlined the union’s demands in Facebook live appearance, which drew an audience of more than 1,300 UAW member, and the union’s bargainers are looking for more than a raise. They are also looking to correct what they see as imbalances, which have become part of the union’s contract with Detroit’s automakers over the past 15 years.
The union, however, noted the top executives at GM and other companies collected substantial raises during the past four years, while the take home pay over hourly workers has stagnated. The COVID-19 pandemic and a shrinking workforce also has dramatically altered the discussion around pay and working conditions not only in the auto industry but also in businesses, ranging from airlines to movie and television production companies.
Executive compensation soared
“While the Big Three CEO’s saw their pay jump 40% over the last four years, our members received raises of just 6% and those increases were wiped out by inflation,” the UAW said in a statement released after the meeting with GM’s bargainers.
“Overall, the starting pay for a Big Three worker today is almost $21,000 less than it was in 2007 when adjusted for inflation. UAW members made enormous sacrifices to save the automakers during the Great Recession, but we’ve never been made whole. These massively profitable companies can afford our demands,” the UAW added to underscore its demands.
“UAW members and workers across America deserve more,” the UAW said, noting UPS just put $30 billion in new money on the table in the tentative agreement with the Teamsters.
“It’s time for the Big Three to make another big investment in American workers and communities,” the UAW said.
“Ford, GM and Stellantis made a quarter-trillion dollars in North American profits over the last decade. They made $21 billion in bottom line profits in just the last six months, but the Big Three haven’t invested those profits in the workers who made them. Instead, over the last 10 years they’ve poured $18 billion into stock buyback schemes that further enrich CEOs and rich investors.
Canadian workers looking for big pay increase
Meanwhile, Unifor, the union representing Canadian auto workers, begins formal contract talks with Detroit’s three automakers this week. Unlike the UAW, Unifor plans to go ahead with the traditional ceremonial handshake to open the talks. But the Canadian union is preparing to make some stiff demands.
“Our bargaining teams are ready to get to the table and start negotiations on behalf of 18,000 Unifor members covered by these contracts,” said Lana Payne, Unifor National president, who recently met with Fain and other UAW representatives to discuss bargaining strategy.
“Our mission is clear. Our members want stronger pensions, better wages, and a secure future in the transition to electric vehicle manufacturing,” Payne added. Unifor’s current contracts expire Sept. 18.
One of the key tasks of company bargainers over the next month, is to prevent the UAW and Unifor from forming an effective united front as the negotiations move towards the finish line in September.