United Auto Workers president Shawn Fain called a 21% wage increase proposed by Stellantis a “no-go” over the weekend, with the union now entering its fourth day of striking.
The proposal replaced the automaker’s previous offer of a 17.5% increase and would have introduced a 10% pay raise immediately after the contract was signed. Stellantis also offered to end wage tiers at its facilities, which have prevented newer workers from earning the same rates as long-term employees. In an interview on CBS’s Face the Nation, Fain announced that the United Auto Workers union would not accept the terms. “It’s definitely a no-go,” he stated. “We’ve made that very clear to the companies.” The union is presently seeking a 46% pay raise, which it says would match the average income growth of Stellantis, General Motors and Ford CEOs.
Stellantis has since claimed that the union misrepresented the terms of its offer to the public. While the automaker has not announced any plans to lay off non-striking workers, Ford has temporarily placed 600 employees on leave, while GM has warned it may reduce its workforce by up to 2,000. Fain criticized the layoff threats, arguing that they proved the OEMs see their workers as “a bargaining chip.” The United Auto Workers union plans to supplement the income of any laid-off members.
Detroit officials and Biden Administration aides are set to assist with negotiations between automakers and UAW representatives. Roughly 13,000 United Auto Workers members are currently on strike, a number that Fain has said could increase if talks with OEM executives fail to yield agreeable terms.
