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General Motors issues counteroffer to UAW amid negotiations

General Motors issues counteroffer to UAW amid negotiations
General Motors issues counteroffer to UAW amid negotiations 02:39

(CBS DETROIT) - General Motors issued a counteroffer Thursday to UAW employees amid the labor negotiations between the union and Detroit automakers. 

On Wednesday, UAW President Shawn Fain said that the union would go on strike against any automaker that doesn't reach a tentative deal by the time contracts expire. 

In response to GM's proposal,  Fain released the following statement:

"After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn't come close to an equitable agreement for America's autoworkers.

GM either doesn't care or isn't listening when we say we need economic justice at GM by 11:59 p.m. on September 14th. The clock is ticking. Stop wasting our members' time. Tick tock."

The demands from the UAW include a 46% pay raise, a 32-hour work week with 40 hours of pay, along with the restoration of traditional pensions for new hires, union representation of workers at new battery plants and a restoration of traditional pensions. 

In a letter sent to employees on Thursday, GM counteroffered with the following:

  • Juneteenth will be a paid holiday for all employees, and there will be 16-18 paid holidays each year.
  • Current entry-level in-progression employees will earn a 56% wage rate increase over the contract.
  • Temporary team members will make $20 per hour, which is a 20% increase.
  • Two progression steps will be eliminated. This will reduce the time-to-max wage rate by 25% and provide in-progression employees with double-digit wage increases at the beginning of the contract.

In addition, most employees at max wage rate will receive a 10% increase in wages, two additional 3% lump sum payments, a one-time inflation recognition payment of $6,000 and they will receive $5,000 in inflation protection bonuses over the agreement. In-progression employees are also eligible for to receive this bonus. 

The following is the full offer letter that was sent out by GM:

In addition to this, Stellantis released a statement on Wednesday saying it intends to make a counteroffer to the union's demands by the end of the week. 

On Thursday, Ford announced that about 8,000 UAW employees will receive a wage increase

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