UAW Seeks Over 40% Pay Raise from Detroit 3 Automakers
UAW President Shawn Fain met with Ford hourly workers last month.
The United Auto Workers (UAW) union is demanding a pay raise of more than 40% from the Detroit 3 automakers, according to sources familiar with the negotiations.
The proposed pay increase would include a 20% raise upon ratification, followed by 5% raises each year over the course of the four-year deal. This demand is significantly higher than the 2019 agreement, which included two 3% raises and two 4% lump-sum payments over the same period.
In an interview with Automotive News, UAW President Shawn Fain emphasized the need for fair compensation, highlighting the 40% pay increase that CEOs of the Big 3 automakers have enjoyed over the past four years. Fain also mentioned that inflation has risen by almost 20% during the same period.
The UAW has presented its economic proposals to Ford, General Motors, and Stellantis, which include not only the pay raise but also the restoration of pensions, cost-of-living adjustments, and a “working family protection plan” similar to the former jobs bank.
GM has expressed concerns about the scope of the UAW’s demands, stating that they could threaten the company’s ability to make decisions in the long-term interest of its employees.
Additionally, Fain mentioned the union’s intention to negotiate for a 32-hour workweek with 40 hours’ worth of pay, with the aim of creating more jobs and opportunities for workers.
