GM Union Negotiations expects to pay unionized employees more. However, if the United Auto Workers (UAW) contract demands, such as significant salary increases, are met, it could complicate the company’s business decisions.
The company and union say the UAW wants a 40% pay increase over the four-year contract, with a 20% increase immediately afterward.
The UAW reported that the Detroit Three CEOs averaged a 40% pay raise over the past four years. GM CEO Mary Barra earned $29 million in 2022.
Chrysler owner Stellantis received the UAW’s economic demands Tuesday. It traveled to General Motors on Wednesday and Ford on Thursday. Contracts end September 14.
GM, the largest US carmaker, worried that these plans would make it harder for the company to create long-term employee-beneficial decisions.
The UAW wants double-digit pay raises, retirement plans with defined benefits for all workers, shorter work weeks, making temporary workers permanent, more vacation time, bringing back senior health care benefits, and cost-of-living adjustments.
Shawn Fain, UAW president, also supported a 32-hour work week. The union wants weekly paid time off. The idea of working four days a week is becoming popular.
The GM stressed the importance of a fair agreement that gives workers what they deserve and keeps the company successful. It’s crucial since many industrial businesses don’t have unions. The UAW hasn’t commented on GM’s contract demands.
Fain said the union’s requests are bold and daring ideas, the most we’ve seen. UAW requests. A plant closing allows a strike. They also want to eliminate the two-tier wage system, where workers with more experience make much more money than new employees.
As discussions continue, the future of how workers and the car industry interact is still a big topic. Both sides want a win-win solution.