General Motors Co. and the United Auto Workers remain far apart on a deal after the union rejected the automaker’s offer from five days ago that would raise average compensation to $150,000 a year, say people familiar with the matter.
(Bloomberg) — General Motors Co. and the United Auto Workers remain far apart on a deal after the union rejected the automaker’s offer from five days ago that would raise average compensation to $150,000 a year, say people familiar with the matter.
With a deal remaining elusive, Chief Executive Officer Mary Barra told salaried staff in a webcast Wednesday that the UAW’s latest counteroffer is still too expensive, the people said, requesting anonymity because her presentation was private. Barra compared GM’s labor costs of $67 an hour including benefits to $45 paid by electric-vehicle rival Tesla Inc. and said it would grow as a result of the current offer.
Barra’s remarks, along with an opinion piece published in the Detroit Free Press Wednesday morning, are evidence of GM’s frustration over rhetoric coming from UAW President Shawn Fain and the costly demands he has made. But the company is continuing to negotiate with the union.
In the opinion piece, GM President Mark Reuss called the UAW’s demands “untenable” and refuted claims made by Fain that workers make poverty level wages. The $150,000 GM is offering in annual compensation includes benefits, profit sharing checks and average overtime per worker.
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The union has been striking for six days at one plant each at GM, Ford Motor Co. and Stellantis NV, and threatens to walk out of more plants Friday if progress isn’t made in negotiations.
Currently, all three companies have offers on the table for roughly 20% in pay increases. The union has asked for 36% raises plus the return of guaranteed pensions, retiree health care and cost-of-living allowances.
The automakers all have resisted a return to pension and retiree health coverage. GM has boosted contributions to worker 401(k) plans to 6.4%.
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