General Motors made its first wage-and-benefit offer to the United Auto Workers that falls far short of the union’s initial demands.
United Auto Workers member John Weyer walks in the Labor Day parade in Detroit, Monday, Sept. 4, 2023. – General Motors first wage-and-benefit offer to the United Auto Workers on Thursday falls far short of the union's initial demands.
GM said in a letter to workers that it's offering a 10% wage increase during a new four-year contract, plus two more 3% one-time payments. It's also offering a $6,000 inflation payment, $5,000 more in lump sums to protect against inflation during the contract, and a $5,000 contract ratification bonus. The company wouldn't say when the pay raises or most of the lump sums would be effective.
The union, citing large company profits over the last decade and CEO pay raises, is seeking 46% across-the-board pay raises over four years, a 32-hour week with 40 hours of pay, restoration of traditional pensions for new hires, union representation of workers at new battery plants, restoration of traditional pensions and elimination of wage tiers. Top-scale UAW assembly plant workers make about $32 an hour, plus annual profit sharing checks.
In GM’s letter to employees signed by President Mark Reuss and manufacturing chief Gerald Johnson, the company said the wage increases it proposed are the largest since the 1999 contract.
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