The United Auto Workers (UAW) union has submitted a counterproposal to Ford after rejecting the automaker’s initial offer over the Labor Day weekend.
The proposal is the first sign of progress in negotiations between union representatives and Detroit-Three executives that started in July. Stellantis and General Motors have also signaled that they will deliver their terms to United Auto Workers before the end of the week, although neither has shared the details of their proposals. The counteroffer comes just one week before current contracts with car manufacturers end on September 14, giving the two parties little time to discuss revisions.
Ford submitted a contract to the union last week, in which the automaker offered a 9% wage increase, additional health care coverage and other benefit improvements. However, United Auto Workers president Shawn Fain refused to sign the agreement, stating: “Ford’s wage proposals not only fail to meet our needs, it insults our very worth.” The UAW is seeking a 46% pay raise over the next four years alongside job security guarantees to combat potential labor cuts or plant closures caused by the automotive industry’s transition to electric vehicles. Additionally, Fain noted that the contract would allow Ford to hire more temp workers, decreasing the need for long-term employees.
Last week, the United Auto Workers union filed an unfair labor practice complaint against General Motors and Stellantis, accusing the two automakers of purposefully stalling contract negotiations. While both automakers protested the claim, Reuters has since reported that GM plans to meet with UAW representatives on September 7, while Stellantis has announced it will provide its own counteroffer later this week after its original offer was declined in August. “They waited now until the last eight days to want to start talking,” noted Fain, “so we’ve got a lot of work to do.” Should Detroit-Three and UAW leaders fail to reach an agreement before September 14, the union has voted to launch a strike that could cost the industry billions.
