The United Auto Workers plans to make a counteroffer to Ford Motor Co. after rejecting the company’s first proposal last week, according to people familiar with the matter.
(Bloomberg) — The United Auto Workers plans to make a counteroffer to Ford Motor Co. after rejecting the company’s first proposal last week, according to people familiar with the matter.
Union leaders are planning to make their proposal Wednesday afternoon, said the people, who asked not to be named because the talks are private. Ford made an offer on Aug. 31 that included 9% wage increases plus payments that equal 6% of pay. The company also offered $12,000 in cost-of-living assistance and the elimination of different tiers of compensation.
UAW President Shawn Fain and his bargaining teams are working more rapidly with Ford than they are with General Motors Co. or Stellantis NV, maker of Jeep and Chrysler models. This after Fain said in an Aug. 31 video that the first Ford offer “insults our very worth.”
Fain said the Ford offer didn’t address job security concerns and didn’t place a cap on temporary hires. The 9% pay increase was well short of the 40% the union initially offered. The union also wants restoration of defined benefit pensions and health care. All in, the union’s proposal would cost each of the Big Three automakers around $80 billion.
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Union negotiators expect an offer from GM to come in Thursday morning one of the people said. GM spokesman David Barnas said only that the two sides will meet on Thursday.
The union is further apart with Stellantis, one of the people said. The company plans to produce a counteroffer to the UAW on Friday, a spokesperson said.
“We look forward to continuing our discussions to reach an agreement that better positions the business to meet the challenges of the US marketplace and secures the future for all of our employees,” Stellantis said in a statement.
–With assistance from Keith Naughton.
(Updates with Stellantis comment in final paragraph)
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