Breaking with the long-standing custom of the “handshake ceremony” with the auto executives of the Big Three auto makers to open contract talks, United Auto Workers president Shawn Fain as a substitute speaks with and does “members’ handshakes” with Stellantis staff on the Stellantis Sterling Heights Assembly Plant on July 12, 2023 in Sterling Heights, Michigan. The UAW opens auto contract negotiations with Stellantis right now, Ford on July 14, and General Motors on July 18. (Photo by Bill Pugliano/Getty Images)
Bill Pugliano | Getty Images News | Getty Images
DETROIT – As the United Auto Workers union enters day six of focused strikes towards the Detroit automakers, General Motors President Mark Reuss is criticizing union management for its rhetoric and “flow of misinformation” through the ongoing contract negotiations.
Reuss, in an editorial, centered on the union’s public bashing of the corporate and components of GM’s “record” contract proposal final week that included 20% pay raises and improved break day, bonuses and different advantages over the four-year time period of the deal.
“As the past has clearly shown, nobody wins in a strike,” Reuss mentioned in a Wednesday column in The Detroit Free Press. “We have delivered a record offer. That is a fact. It rightly rewards our team members, while positioning the company for success in the future. Often in these situations, the clouds of rhetoric can obscure reality.”
The UAW hasn’t responded to the op-ed, as of Wednesday morning.
GM’s final provide was made Sept. 14, forward of the union initiating a “Stand Up Strike” at one meeting plant every for GM, Ford Motor and Stellantis. UAW President Shawn Fain mentioned Monday the strikes will develop at midday Friday except “serious progress” is made in negotiations.
Currently on strike are roughly 12,700 UAW staff from GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.
What did GM provide?
Reuss mentioned GM’s provide, which the union countered, acknowledges “the many contributions our represented team members make to our company — past, present and future.”
Under the deal, Reuss mentioned about 85% of present represented staff would earn a base wage of roughly $82,000 a yr. That’s in comparison with the common median family revenue in 9 areas the place GM has main meeting crops is $51,821, he mentioned.
GM’s present proposal is estimated to value between $700 million and $1.2 billion over the lifetime of the deal, Wells Fargo’s Colin Langan mentioned in a Sept. 15 investor word. If the corporate gave in to all of the union’s calls for, it will value the corporate between $6 billion and $8 billion below the deal, Langan mentioned Wednesday throughout CNBC’s “Squawk Box.”
“There’s a long way to go. We’re talking about fixed-costs, too. That’s the real pain-point for the automakers,” Langan mentioned, calling them “material numbers” for the businesses.
Key calls for from the union have included 40% hourly pay will increase; a decreased, 32-hour workweek; a shift again to conventional pensions; the elimination of compensation tiers; and a restoration of cost-of-living changes. Other objects on the desk embody enhanced retiree advantages and higher trip and household go away advantages.
Reuss mentioned Wednesday that the union’s full calls for can be “untenable,” or unsustainable, for the corporate.
“If we don’t continue to invest, we will lose ground — quickly. Our competitors across the country and around the world, most of whom are non-union, will waste no time seizing the opportunity we would be handing them,” he mentioned.
Mark Reuss, govt vice chairman of world product improvement at General Motors Co. (GM), speaks subsequent to a 2019 Chevrolet Silverado pickup truck through the 2018 North American International Auto Show (NAIAS) in Detroit, Michigan.
Andrew Harrer | Bloomberg | Getty Images
Reuss’ feedback are the newest by automotive executives because the UAW takes a strategically aggressive method through the talks, displaying little leeway of their calls for.
Late Monday, Ford launched a prolonged assertion fact-checking feedback made by Fain, together with auto employee wages, firm income and inventory buybacks.
It adopted Ford CEO Jim Farley final week saying the corporate would have “gone bankrupt by now” below the union’s present proposals. He’s additionally criticized Fain for his method to bargaining.
“We’ve never seen anything like this; it’s frustrating,” Farley informed CNBC’s Phil LeBeau final week forward of the strikes. “I don’t know what Shawn Fain is doing, but he’s not negotiating this contract with us, as it expires.”