Title: United Auto Workers President Close to Deal with Automakers, But Further Strikes May Be Possible
Subtitle: Union leader warns of potential strikes as negotiations with automakers continue
Date: [Insert Date]
In an address to United Auto Workers (UAW) members on Friday, President Shawn Fain revealed that the union is nearing a deal with all three unionized automakers but cautioned that additional strikes might be necessary to secure final concessions. Fain stated that improved offers from General Motors Co. and Stellantis NV had been received, but expressed the belief that there is still “more to be won.”
The stage is set for a potential showdown between the union and the automakers in the coming week. Although the union has 23% raises on the table from all three automakers, Fain emphasized the union’s desire for a 25% wage increase. Additionally, the UAW is pressing for improved retirement benefits, job security measures, and the inclusion of future battery plant workers in the contract.
Fain concluded his address by urging all members to be prepared to strike if necessary, stating, “We’ve got cards left to play and they’ve got money left to spend. That’s the hardest part of the strike. Right before a deal is when there is the most aggressive push for that last mile.”
Ahead of Fain’s address, both General Motors and Stellantis matched Ford Motor Co.’s initial wage offer, which had already been increased by 23%. GM announced on Friday that it would offer most UAW workers $40.39 per hour, potentially bringing the total pay hike closer to the union’s minimum target of 30%.
While all three companies have made improvements for temporary workers, including raises, the UAW is still negotiating for a pathway that would automatically convert future temporary workers into full-time employees. Ford has offered to convert existing temp workers after 90 days, while GM and Stellantis, who have more temporary workers, would require additional time for conversion.
Fain disclosed that all three automakers have reduced the time for new hires to reach top pay within four years. However, Ford has offered the best cost-of-living allowance to protect workers from inflation, and Fain called for GM and Stellantis to do more in that regard.
According to Fain, all three companies have agreed to enhance pension benefits and increase 401(k) contributions. However, he claimed that Ford and GM’s lump sum payments for current retirees were “deeply inadequate,” and Stellantis had rejected any increases.
Negotiations with Ford picked up this week after a brief lull following the strike at Ford’s largest factory in Kentucky. Approximately 85% of the contract terms have been resolved, according to sources familiar with the talks.
While GM and Stellantis improved their offers to match Ford’s proposal from two weeks ago, Fain directed criticism towards Ford and Executive Chair Bill Ford, accusing the company of being unwilling to improve its offer since the recent strike.
Fain also dismissed Bill Ford’s call for the union and the company to collaborate against non-union automakers, stating, “We won’t be used in this phony competition… Instead, we’re going to organize non-union automakers everywhere.”
In response to Fain’s criticism of Ford’s stock dividend payment, the company highlighted that “tens of thousands of UAW members” have Ford stock in their retirement plans and shareholders deserve to be rewarded when the company performs well.
Final sticking points in the negotiations with Ford include ensuring coverage for workers at battery plants and the Blue Oval City complex in Tennessee, which will feature a new battery plant and an electric-truck plant upon its opening in 2025.
As of now, GM and Stellantis have not yet provided comment. Stellantis acknowledged that progress had been made in narrowing negotiation gaps but emphasized the importance of finding solutions that safeguard the company and its employees.
Amidst the ongoing strike, UAW members expressed their hopes for a satisfactory pay increase, cost-of-living adjustments, healthcare protection, and the opportunity for battery workers to unionize.
Negotiations are expected to continue in the coming days as the UAW and the automakers work towards a comprehensive agreement.