UAW President Shawn Fain addresses union members during a Solidarity Sunday rally in Warren, Michigan, Aug. 20, 2023
Michael Wayland / CNBC
DETROIT — The United Auto Employees and Detroit automakers remain far apart ahead of the union “likely” strategically striking the businesses after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday night.
The outspoken union leader laid out significant details of current proposals between the UAW and General Motors, Ford Motor and Stellantis regarding wage increases, cost-of-living adjustments, bonuses and job security.
Fain also laid out general plans about how the union expects to strategically strike the Detroit automakers, if needed. He said the strike will start at a limited variety of locations, followed by others, if required.
“If the businesses proceed to bargain in bad faith … then our strikes are going to proceed to grow … We’ll hit where we’d like to hit,” Fain said Wednesday during a Facebook Live event.
Fain also said “an all-out strike continues to be a possibility.” He added if there are strikes, the union won’t negotiate Friday, as a substitute they are going to hold a day rally in Detroit with U.S. Sen. Bernie Sanders, the progressive lawmaker from Vermont.
Fain referred to the union’s plans as a “stand-up strike,” a nod to historic “sit-down” strikes by the UAW.
“I’ll inform you this, I’m at peace with a choice to strike if now we have to because I do know that we’re on the appropriate side of this battle,” Fain said after discussing his faith in religion and the union. “It is a battle of the working class against the wealthy; the haves versus the have-nots; the billionaire class against everybody else.”
Key demands from the union have included 40% hourly pay increases, a reduced 32-hour workweek, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, amongst other items.
Ford CEO Jim Farley, in a lengthy statement released by the corporate, criticized several of Fain’s statements, saying the automaker has not “received any real counteroffer” to the last proposal from the union.
He also said Fain missed a Tuesday meeting that he and Ford Chair Bill Ford believed the union chief can be attending. Farley defended the corporate’s recent proposals, saying “if there’s a strike, it’s not because Ford didn’t make a fantastic offer.”
Stellantis didn’t immediately respond for comment on Fain’s remarks.
GM issued a blanket statement that the corporate continues to bargain with the union and “have presented additional strong offers.”
“This includes historic guaranteed annual wage increases, investments in our U.S. manufacturing plants to offer opportunities for all, and shortening the time for in-progression employees to achieve maximum wages,” GM said in an emailed statement.
Here’s where things stand on key issues, in accordance with Fain.
Wages
Fain said Ford has offered a 20% increase over the 4 years of the deal, followed by GM at 18% and Stellantis at 17.5%.
Such increases would easily be record wins for the union in modern times, but Fain said they should not adequate because they pale as compared to the roughly 40% pay increases commanded by the Detroit automaker CEOs.
“We’re seeing movement from the businesses, but they’re still not willing to agree on the sorts of raise that may make up for inflation on top of many years of falling wages, and their proposals don’t reflect the huge profits that we have generated [for them],” he said.
Tiers
Ending tiers, or in-progression pay, where members are paid in a different way based on seniority, has been a top priority of the union for years.
Fain said each of the automakers has proposed cutting an eight-year grow-in period to top wages which can be currently at greater than $32 an hour to 4 years.
COLA
Fain has demanded a return to cost-of-living adjustments, or COLA, which increase wages to maintain pace with inflation.
Fain said all firms have made “deficient COLA” proposals that either include lump sum payments, limit the amounts, or only kick in at certain levels that the union finds inadequate.
Ford has proposed a return to a COLA formula used previously, which Fain said would supply estimated wage protection of lower than $1 over the term of the contract; proposals from GM and Stellantis would supply no protection, he said.
Profit-sharing
The UAW wanted to boost profit-sharing payments to offer staff $2 for each $1 million an organization spends on share buybacks, special dividends and increases to normal dividends.
Fain said the Detroit automakers have each offered “concessionary profit-sharing” formulas that lower the present standards, that are based on an organization’s North American profits.
The union said Ford’s formula would have resulted in 21% smaller checks during the last two years; GM’s would have resulted in 28% smaller checks during the last 12 months; and Stellantis would love to base payments on “an unknown internal company attendance calculation.”
Profit-sharing was implemented lately as a way for the businesses to “reward” members in good times but not must pay as hefty of bonuses when the businesses weren’t doing well.
Temps
Ending using temporary staff, who might be paid lower wages and don’t have any job security, is one other long-standing UAW priority. Fain said that Ford has agreed to convert all current temporary staff with 90 days of continuous service to full-time staff, with full advantages, within the tiered progression.
Fain said GM has offered “inadequate” advantages and “meager” wage increases for temps and that Stellantis’ proposal provides no path in any respect to full-time status.
Job security
The UAW has proposed what it calls a “Working Families Protection Program,” under which employees at a shuttered factory can be paid by the automakers to do local community-service work. All three automakers rejected the proposal, Fain said. Stellantis went further, proposing a unilateral right to shut and sell 18 facilities, including factories and parts depots, he said.
Work-life balance
The UAW has demanded more break day for staff, with more paid vacation and holidays and prolonged parental leave. All three of the automakers agreed to make Juneteenth an official holiday, Fain said, but only Ford went further, proposing two weeks of parental leave.
Retirees
The UAW has demanded a “significant” increase to pay for retired staff. All three automakers rejected any increases, Fain said.
This can be a developing story. Check back for updates.
