United Auto Workers President Shawn Fain said talks with automakers for a new labor contract are still far apart, reiterating a threat to strike the companies.
While a work stoppage could still be avoided altogether, the UAW and General Motors Co., Ford Motor Co. and Stellantis NV are approaching a strike deadline. The union’s current labor contract expires tomorrow at midnight Eastern time.
“We are still very far apart on our key priorities,” Fain said in a Facebook Live broadcast aimed at the union’s 150,000 members. “We are prepared to strike these companies in a way they have never seen before.”
The UAW and three automakers are still trying to come to an accord on key economic issues, including pay raises, cost-of-living adjustments — called COLA — as well as pensions for newer workers and job security at select factories. Both the union and the companies have amended their offers as they try to reach a deal, but still aren’t in full agreement.
The union lowered its pay demand from 40%, which comes to 46% once raises are compounded, to 36%. Ford had offered to reinstate COLA for the first time in 14 years, but Fain said the formula offered wasn’t good enough. Still, the volleys show that both starts are budging from their opening offers.
Fain said the union proposed 90-day progression to the top pay rate and to restore pensions and retire health care for all workers. He said the three companies agreed to cut the path to full pay to four years. All three rejected pension and retiree health proposals for workers hired after 2007.
On pay, Fain said Ford proposed 20% raises over four years, while GM offered 18% and Stellantis 17.5%.
He said all three companies proposed different COLA programs, but none were satisfactory. He added that all three companies are trying to cut profit sharing. He said Ford’s would have been a 21% smaller check for last year and GM’s would have cut the payment by 29%.
The union president also complained that Stellantis wants the right to close and sell 18 different facilities in the US.
“I’m at peace with the decision to strike if we have to because I know we’re on the right side of this battle,” Fain said. “It’s a battle between the working class and the rich.”
