Stellantis Submits New Contract Proposal to UAW, GM Counters Misinformation
Stellantis announced on Wednesday that it has presented a new contract proposal to the UAW. In response, General Motors (GM) shared additional financial details of its latest offer to counter what it called “misinformation.”
According to a spokesperson, Stellantis presented its latest offer on Tuesday. This marks the fifth proposal since negotiations began. The company stated that the proposal focused on resolving subcommittee open issues, but did not provide further details.
A UAW source confirmed on Wednesday that the union has received a new offer from Stellantis. This is the first new offer from any of the three automakers since the UAW initiated the strike on Friday, September 15.
Talks are still ongoing between the UAW and all three companies as they approach the union’s Friday deadline to demonstrate “serious progress” towards new contracts. If this progress is not evident, UAW President Shawn Fain plans to expand the strike to involve workers at more plants.
GM and UAW Remain Far Apart on Agreement
As of Wednesday, a source with knowledge of the negotiations revealed that GM and the union were still far apart on reaching an agreement. The UAW declined to comment on the status of potential deals with any of the three automakers.
GM officials decided to disclose specific details about their most recent offer. The offer includes a total raise of 20 percent over the next four years for UAW-represented employees. GM President Mark Reuss stated that this would bring top wages to $39.24 by 2027, applying to workers at components and parts distribution facilities who currently earn less than other employees.
In an opinion piece published in the Detroit Free Press, Reuss explained that GM’s September 14 proposal intended to align all employees covered under the national contract into the same pay system. Additionally, it would enable new employees to reach the top wage in just four years, reducing the current eight-year period for new hires.
Reuss emphasized that GM’s structure ensures fair payment across various businesses under the national contract, including assembly, manufacturing, warehousing, and supply jobs. The proposal aims to raise base wages for 85 percent of its represented workforce to approximately $82,000 per year. With overtime pay and benefits factored in, such as healthcare, total compensation could exceed $150,000 annually.
In his piece, Reuss also stated that GM’s offer guarantees product allocation, indicating that work would continue at all of GM’s U.S. facilities amid its transition to an all-electric vehicle lineup. This communicates the automaker’s unwillingness to close any plants.
Reuss responded to the union’s demands, referring to them as “untenable.” He highlighted that GM reinvests its profits into the company and its employees, including preparation for EV production and future gasoline-powered vehicle development.
Reuss backed up his claims by sharing GM’s financial performance. The company reported approximately $65 billion in net income from 2013 to 2022, with $9.9 billion earned in the previous year alone. Additionally, GM’s capital expenditures amounted to over $77 billion during that period, with an estimated $11 billion to $12 billion spending projected for this year.
The Detroit 3 Respond to UAW’s Criticism
The Detroit 3 automakers have pushed back against the UAW’s criticism of their proposals in recent days. President Shawn Fain accused the companies of earning record profits while paying “poverty wages” to employees.
GM’s President, Mark Reuss, expressed concern over the flow of misinformation amid the UAW’s rhetoric. He emphasized the need for everyone to work towards reaching an agreement promptly, allowing the GM team to return to work. Reuss stated that their proposal, presented on September 14, acknowledges the significant contributions made by GM’s represented team members in the past, present, and future. The offer addresses their primary concerns, including wage growth, job security, and long-term stability.