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General Motors and UAW Clash Over Wage Demands

General Motors

BNR – The American multinational automotive manufacturing company, General Motors (GM) said it desires to grant union workers higher salaries. However, the company noted that offering the United Auto Workers’ (UAW) pushy desires hurts the business.

GM and UAW sources said that the union wanted a minimum 40 per cent wage raise for four years. This further includes a primary 20 per cent raise upon signing the agreement.

A few days ago, the union stated that the chief executives of Detroit Three had obtained a 40 per cent raise on average for the past four years. It also emphasised that General Motors’ chief executive, Mary Barra, obtained $29mln last year in overall compensation.

The union laid down its economic desires to Chrysler-parent Stellantis, General Motors and Ford. That comes before the end of the current contract of four years, on 14 September.

UAW’s Ambition May Impact General Motors Long-Term Business

General Motors is the largest US car manufacturer. It said that the demands would jeopardise the company’s ability to do right for the team in the long run.

UAW demanded salary raises in double-digits, benefit pensions for all workers, and shorter work periods in the week. Furthermore, the union aims at making all temporary positions in US car manufacturer firms permanent.

Also, the union’s president Shawn Fain promotes a work week of 32 hours only, as opposed to the original 40 hours.

Sources familiar with the matter said that UAW demands the firms for a paid day-off in every week, particularly in light of more popular trial working weeks of four days only. The company stated that a just deal would please workers and enable the firm to go back to work.

“We think it’s important to protect US manufacturing and jobs in an industry that’s dominated by non-unionized competition,” GM noted.

On Tuesday, Fain stated that UAW’s demands were “ambitious”. He further said that the union was demanding the right to strike over factory closure and abolish a two-class system. The system gives 25 per cent more pay to older employees.


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