UAW Fresh Counter-Proposal to Stellantis: In the last moments of the ongoing labor disagreement between the United Auto Workers (UAW) and Stellantis, the company group that includes Chrysler, a brand-new counter-proposal came out on Thursday. This happened just one day before the UAW threatened to strike at more of the Detroit Three car makers, which was a dangerous time.
As the fourteenth day of this labor dispute went on, a UAW official confirmed that the new idea came up in the middle of talks with industry giants Stellantis, General Motors (GM.N), and Ford Motor.
When it comes to important topics, the difference between the UAW and the Detroit Three is like a canyon of different opinions. As of Thursday night’s end, the UAW is still in favor of a 40% pay raise, living expenses that are tied to inflation, job or pay guarantees, getting rid of lower wages for new workers, and keeping defined benefit pensions
But the question of how to pay the people who make the batteries for the next generation of cars, which will be electric, hangs over the talks like a mysterious ghost. Ford said this week that a $3.5 billion battery project in Michigan would be put on hold until it could be run in a way that was competitive. This decision, which made the UAW unhappy, shows how many problems are causing the negotiations.
In the middle of all the demands and counteroffers, the automakers offer to raise wages by 20% as a way to make peace. On the other hand, this generosity is balanced by a less generous approach to cost-of-living increases and retirement benefits.
Also Read: UAW Rejects Stellantis Offers as Insulting in Ongoing Negotiations
As long as the automakers continue to disagree with the UAW’s plan to move new workers to the top pay rates after only 90 days on the job, there is still a significant point of contention. The UAW, hiding behind journalistic privacy, will not confirm or deny rumors that they want a 30% pay raise, taking inflation into account.
As a result of these labour problems, the market pushed General Motors ‘s shares up 2.5% and Ford’s up 1.4% by the end of the day. The most important part of this story will be told in a live speech by UAW President Shawn Fain. When Fain asked President Joe Biden to cross a union picket line in a way that had never been done before, it added a bit of political drama to an otherwise boring week of contract talks with G.M.
Stellantis and General Motors do not say anything quickly during the high-stakes brinkmanship and strategy posturing. Stellantis did, however, break its silence early on Thursday to say that the UAW’s hatred was wrong. The global company criticized the use of “violent and inflammatory” language. It distanced itself from the idea that businesses are “the enemy” in a made-up “war.” On the table for negotiations is what is called a “record offer,” and Stellantis is begging for the verbal insults to stop and making it clear that he wants to reach a deal quickly.
During the last week, the UAW grew the strike area from three assembly lines to 38 places where G.M. and Stellantis distribute parts. Ford was conspicuously missing from this uprising. It is said that he was not involved because of progress.
Stellantis made more than 350 people in Ohio and Indiana lose their jobs for good last week. This will leave a lasting mark on the cost of this long-lasting war. Ford sent home 600 workers in a base in Michigan at the same time that G.M. stopped making cars at a plant in Kansas, which put 2,000 people out of work because of a strike.
Our Reader’s Queries
What is the latest offer to the UAW Stellantis?
Stellantis is directing its investments towards trucks and SUVs in North America, with a focus on both gas-powered and EV versions until 2028. To reduce costs, the company plans to offer $50,000 buyouts to UAW production workers in 2024 and 2026, enabling them to hire new workers at lower wages.
What is the signing bonus for the UAW Stellantis contract 2023?
The Salaried Bargaining Unit (SBU) members are in for a treat with our new tentative agreement. They can expect significant economic gains, including annual general wage increases, the reinstatement of the Cost of Living Allowance (COLA), and a generous ratification bonus of $5,000. This historic agreement is a testament to our commitment to providing our employees with the best possible compensation package.
What is the new proposal for the UAW?
The UAW has announced that the Ford agreement will result in a 25% increase in base wages until April 2028. The top wage, currently at $32.32 per hour, will increase by over 30% to more than $40 per hour. Additionally, the starting wage will see a 68% increase, reaching over $28 per hour throughout the contract’s duration.
What is the counter offer for Stellantis?
Stellantis, the automaker, has presented a counteroffer to the United Auto Workers. The offer includes a wage increase for each year of a new four-year contract, amounting to a total of 14.5%.