United Auto Workers Offers Slightly Lower Raise Demand to Detroit’s Automakers

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United Auto Workers Offers Slightly Lower Raise Demand to Detroit’s Automakers
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The United Auto Workers has lowered their pay increase demand to 36% from 40%, but Detroit’s automakers don’t think much of the offer, according to people familiar with the offer.

Over the weekend, the UAW made its first movement off its 40% raise request. It is now asking for a series of increases over nearly five years that would start with an 18% boost and then alternate between 5% and 4% annually over the subsequent years of the contract, said one of the people, who asked not to be identified revealing internal discussions. The companies still see the demand as boosting labor costs so high that it would threaten their viability, according to the source.

General Motors Co., Ford Motor Co. and Stellantis NV are facing a contract deadline just before midnight on Sept. 14 for nearly 150,000 US hourly workers. UAW President Shawn Fain has threatened to strike all three automakers simultaneously — a first in the union’s history — if he doesn’t have a deal by then. “The deadline is the deadline,” Fain said in an interview last month.

The automakers and the union still remain far apart on several issues, including the UAW’s request for a restoration of cost-of-living adjustments, the person said. The union also is asking for a 32-hour work week, resumption of traditional pensions, restoration of retiree health care and a boost in pension payments.The automakers have said the union’s original 40% pay increase demand actually totals 46%, as each year’s raise would come on top of prior years’ gains.

Fain went on a Facebook Live Sept. 8 displaying a trash can marked “Big Three Proposals” and said that’s where the automakers’ contract offers belong.--With assistance from David Welch.

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