UAW Counteroffers Labor Contract to Ford, Talks Intensify
September 6, 2021
The United Auto Workers (UAW) union presented a counterproposal on economic issues to Ford Motor, while Stellantis, the parent company of Chrysler, plans to offer its counteroffer later this week. These developments come as negotiations heat up with the expiration of the current labor agreements for 146,000 workers at the Detroit Three automakers on September 14.
According to the UAW, 97% of its members voted in favor of authorizing a strike if an agreement is not reached. UAW President Shawn Fain criticized the automakers’ delay in starting negotiations, saying, “They chose to follow the same path they have in the past, which is delay, delay… so we’ve got a lot of work to do.”
Last week, Ford offered a 9% wage increase through 2027, which falls significantly short of the 46% wage hike sought by the union. The UAW expects to receive a proposal from General Motors (GM) on Thursday.
Stellantis announced its intention to provide a counter offer on the union’s economic demands by the end of the week. Ford confirmed that negotiations with the UAW are ongoing but declined to comment on the specifics.
The UAW recently filed unfair labor practice charges against GM and Stellantis, alleging that the companies refused to bargain in good faith. The union’s demands include a 20% immediate wage increase, followed by four 5% annual wage hikes, defined-benefit pensions for all workers, 32-hour work weeks, and additional cost-of-living hikes.
Additionally, the UAW is pushing for all temporary workers at U.S. automakers to be made permanent, enhanced profit-sharing, and the restoration of retiree health-care benefits and cost-of-living adjustments. The union claims that Ford wants no cap on temporary workers and that these workers would not be eligible for profit-sharing, receive inferior health-care benefits, and earn less than 60% of the top wage rate for permanent workers.
In an effort to address some of the concerns, Ford proposed raising starting pay for temporary workers to $20 an hour, a 20% increase, and offering permanent employees $12,000 in cost-of-living adjustments over the contract. However, there is still a disagreement over the profit-sharing formula, with the UAW claiming a 21% reduction in payouts over the last two years.
The negotiations continue as both sides work towards reaching a mutually beneficial agreement. The outcome of these talks will have a significant impact on the wages and benefits of thousands of autoworkers in the United States.
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Reporting by David Shepardson; editing by Jonathan Oatis and David Gregorio
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