UAW president deems GM’s 10% wage hike offer ‘offensive’.
The President of United Auto Workers Rejects “Insulting” Offer from General Motors
The president of United Auto Workers (UAW) has firmly rejected an offer from General Motors (GM), describing it as “insulting.” GM had proposed a 10% wage increase for UAW, accompanied by two additional 3% annual lump sum payments over four years, in an effort to prevent an imminent strike in the auto industry. However, UAW President Shawn Fain released a statement on Thursday dismissing the offer.
“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” read the statement. “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.”
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The UAW International Union is demanding a significant 46% wage increase before September 14th, when contracts with Ford, General Motors, and Stellantis (the “Big Three” American auto manufacturers) are set to expire. Ford recently offered a 9% wage increase until 2027, along with 6% lump sum payments, but this offer was also rejected by UAW.
UAW has filed unfair labor practice charges against Ford, General Motors, and Stellantis, as the union strives to negotiate fair wages and pensions. If their demands are not met by September 14th, the union has voted in favor of a strike.
President Joe Biden has downplayed concerns about a potential strike, stating that he does not believe “it’s going to happen.” In August, Biden issued a statement urging the companies to “forge a fair agreement” with UAW, emphasizing the opportunity for a transition to a clean energy economy that benefits both auto companies and unionized workers.
“The need to transition to a clean energy economy should provide a win-win opportunity for auto companies and unionized workers,” Biden said in the prepared statement. “It should enable workers to make good wages and benefits to support their families, while leading us into a future where America is leading the way in reducing vehicle emissions.”
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Biden has faced challenges in securing endorsements from UAW for his 2024 reelection bid, despite having received their endorsement in 2020.
Amid concerns of a strike, former President Donald Trump has urged auto industry workers to encourage their leaders to vote for him in the next presidential election. Trump has criticized Biden’s “crazed concept” of “all Electric Cars,” claiming that it would have a significant impact on the auto industry.
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