U.S. auto workers collectively demand a 40% wage increase from Detroit automakers, putting pressure on GM and Ford

Published On:Sep,21 2023    Hits: 281
According to reports, the United Auto Workers (UAW) is pressuring Detroit auto companies to give factory workers a 40% wage increase in the next labor contract. This wage increase request is the largest in recent years.

The UAW is negotiating new four-year collective bargaining agreements for about 150,000 hourly workers at General Motors, Ford Motor and Stellantis, people familiar with the matter said.

Currently, the starting wage for union workers in Detroit auto companies is about $18 an hour, and the maximum wage for workers who have reached a certain length of service is about $32 an hour. The above-mentioned people familiar with the matter said that the 40% salary increase will be the overall salary increase during the next four-year contract period, but it is not yet clear how it will be implemented.

In fact, it can be expected that this salary increase negotiation will also be extremely difficult. As early as 2019, because General Motors failed to reach an agreement on issues such as wages, medical benefits, and employment security, the United Auto Workers (UAW) organized a "general strike" involving about 48,000 workers. Before the two parties reached an agreement, Production across the United States may be temporarily put on hold.

In the end, the strike ended with GMs compromise, in which GM agreed to invest an additional $7.7 billion in direct investment in U.S. factories and promised to create 5,400 jobs. There are also improvements in worker compensation through wages and one-time payments, as well as improvements in profit sharing and compensation for contract changes.

Since the strike, General Motors has lost nearly US$100 million every day, and its cumulative losses have now exceeded US$1 billion. GM also suffered heavy losses in the capital market, with its market value evaporating by more than US$4 billion.

Therefore, it can be said that several major American car giants "dare to be angry but dare not speak out" about the automobile union organization. Trade unions often use strikes as their trump card to force car companies to compromise. This latest salary increase agreement is also a huge pressure for car companies such as Ford and General Motors.
Dongguan Jianpeng Intelligent Technology Co., Ltd
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