General Motors announced on Thursday that they have increased their contract offer to give U.S. deadline approaches automakers a 20% raise, with 10%. This move aims to prevent a strike scheduled to start at 11:59 p.m. if they don’t reach an agreement.
The United Auto Workers union, representing about 150,000 workers at Ford, General Motors, and Stellantis, plans to strike at specific car factories nationwide.
This would be their first-ever simultaneous strike against these big car companies and could harm the economy for weeks. Anderson Economic Group estimates a 10-day strike could cost over $5 billion.
This dispute between deadline approaches automakers and carmakers comes as car companies shift to making electric vehicles, which can be unprofitable.
Autoworkers are also worried about their jobs as electric vehicles require fewer workers to build. Ford also said they offered a 20% raise and other benefits. They believe there is a high chance of a strike since they received no counteroffer.
The union wants not only higher pay but also shorter workdays and better pensions to match their contribution to the companies’ big profits.
President Joe Biden, who supports electric cars, wants both sides to agree and hopes there won’t be a strike.
However, analysts at Evercore ISI think there’s a 90% chance of a strike because workers want more than what carmakers are offering. The union lowered their wage increase demand from 40% to 36%.
These raises are crucial because many members work long hours to make ends meet. The union also wants traditional pensions back, no more compensation tiers, and cost-of-living adjustments.
Ford and GM shared their offers, which include pay increases, better retirement plans, more time off, and healthcare. Fain called these offers “insulting.”
Few years, there was a 42-day GM strike that cost the company about $3.6 billion. The UAW also mentioned a strike during the 2008 recession when they accepted concessions to help car companies avoid bankruptcy.
While strikes may start at specific factories, they could cause confusion by disrupting parts supplies.
The Biden administration might offer emergency aid to smaller companies supplying U.S. auto manufacturers.
Conclusion
In conclusion, the article highlights the intensifying labor dispute between General Motors and the United Auto Workers union as the strike deadline draws near. General Motors’ decision to increase its wage offer by 20%, with a substantial portion allocated for the first year, demonstrates the high stakes involved in preventing a potentially devastating strike.
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