United Auto Workers’s current contract with the Detroit 3 expires on September 14. So far, an agreement hasn’t been reached and the union members are preparing for battle.
In General Motors, the more than 50,000 UAW-represented workers voted almost unanimously (97%) in favor of going on strike in case negotiations with top management fail.
In a Facebook post addressing the workers, UAW Vice President Cindy Estrada wrote that “the resounding ‘yes’ enables your elected bargaining committee to leverage for the best agreement possible”.
GM hasn’t faced a strike for many years. Now, it has to deal with demands to close the salary gap between entry-level and veteran workers and give Tier 1 workers their first wage increase in 10 years.
Unsurprisingly, the management is seeking to limit raises or peg them to various compensations that will, however, be adjustable depending on the company’s profits.
The General recently announced it posted the industry’s largest retail sales increase in August, with its Chevrolet, Cadillac, Buick and GMC brands delivering 207,480 units in the US, mostly due to the increased demand for SUVs and trucks, which in turn is forcing it to boost production of its most popular models.
It continues to have the highest average transaction prices and lowest incentives in the domestic industry. This is obviously good for business – on the other hand, though, it gives the UAW even more leverage over the company when discussing the new contract.
Story References: Autonews, GM
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