UAW Rejects Ford Proposal, Files Charges Against GM, Stellantis - The Detroit Bureau
The United Auto Workers lodged allegations against both General Motors and Stellantis for engaging in unjust labor practices, while UAW President Shawn Fain categorically dismissed Ford Motor Co.'s proposition of a 9% salary hike.
In declining the offer, Fain expressed that the company's contract proposition necessitated compromises and failed to tackle essential union requests regarding pensions, temporary employees, and different levels of employees.
Ford's CEO, Jim Farley, asserted that the initial contract proposal offered to the UAW was exceedingly equitable, as stated in a declaration.
Ford Suggests Higher Pay
Ford employees who are employed full-time on a permanent basis and receive the highest wage rate have the potential to earn a whopping $98,000 in just their first year. This impressive sum includes various elements such as wages, bonuses for cost-of-living adjustments and ratification, profit sharing, and overtime pay.
"In general, this proposal surpasses our calculations of the income of employees working at Tesla and foreign car manufacturers in the United States," Farley stated.
"This agreement would have significant benefits for our employees, ensuring that Ford maintains its distinctive status as the leading American car manufacturer. Additionally, it would grant us the necessary adaptability in our production capacity to meet the evolving demands of customers amidst the industry's changes. Furthermore, this proposal would enable Ford to remain competitive, invest in innovative products, expand its operations, and distribute the fruits of future success with our workforce through profit sharing."
Farley also mentioned that the company has a strong dedication to providing chances for union workers in search of a long-term occupation at Ford. He highlighted that the agreement eradicates the various wage levels, boosts the time it takes to reach the highest pay rate by 25%, ensures a 20% increase in salary for temporary employees, and extends the ratification bonus given to permanent employees to temporary ones as well.
Deal's Limitations
However, Farley cautioned that Ford will not reach an agreement that would jeopardize our future and negatively impact all individuals associated with Ford, including our esteemed UAW employees. Mary Barra, Chair and CEO of GM, expressed identical sentiments in the past few days.
"In essence, we are confident that we can find a way to achieve success collaboratively during this highly competitive and rapidly evolving period in the American automotive sector. Further information can be found below," remarked Farley.
UAW's Essential Demand: End Tiers
Fain, on the other hand, mentioned during a Facebook Live session, which he now uses to connect with both union members and the general public, that Ford's suggestion lacks sufficient fairness in tackling crucial union issues. The existence of wage tiers would persist for an extra six years, further segregating workers. The union, conversely, suggests that new employees should attain top wages within a mere 90 days.
Ford, despite its offer to increase the wages of temporary workers, these workers would only receive 60% of the standard pay given to full-time employees. Fain mentioned that he rejected this proposal by throwing it into the trash, just like what he did with a similar proposition from Stellantis. According to him, if Ford's proposal were implemented, it could potentially result in all of the company's hourly employees becoming temporary workers.
In a decision criticized by Fain as a request for more favorable terms, Ford is suggesting reducing the profit distribution for its hourly workers by 21%, while simultaneously increasing dividends for shareholders by 150% and raising executive pay by 40%.
Fain further mentioned that Ford has not made any endeavor to ensure that the electric vehicles and battery work adhere to the labor agreements of the UAW. Instead, Ford is progressing towards the implementation of powertrains for electric vehicles in joint venture facilities with non-union partners, according to Fain. In his remarks, which were confrontational and vulgar, Fain emphasized the importance of not substituting oil tycoons with battery tycoons.
The labor union is additionally requesting an end to the "financial warfare" of factory shutdowns, which devastate neighborhoods and disrupt the livelihood of employees who strive to meet their expenses with their meager earnings. Fain mentioned the example of a Ford worker, who comes from a lineage of employees and has been with the company for 15 years, but has yet to reach the highest pay rate of $32 per hour.
According to the president of the UAW, the majority of Americans support the union's efforts to achieve improved wages, reduced working hours, and fairer working conditions, which encompasses a healthier work-life equilibrium. Fain further emphasized that individuals migrated to the Midwest in the past years with the hope that automotive occupations would afford them and their loved ones a chance at progress and prosperity.
However, this commitment has been undermined by an unyielding competition to be the cheapest, resulting in a decrease in the earnings of highly skilled employees by approximately $10 per hour in the last ten years.
Fain strongly emphasized that there is still ample time to reach an agreement with all three companies before the contracts expire on September 14th at 11:59 PM. However, it is crucial that the companies present realistic proposals.
According to union officials, GM and Stellantis face allegations of engaging in unjust labor practices due to their lack of substantial contract proposals.
Both corporations dismissed the UAW's grievance, asserting that negotiations were ongoing.
Gerald Johnson, a high-ranking official at GM, expressed his astonishment and firm denial towards the complaint lodged by the International UAW, as well as his disbelief that it holds any validity. He went on to state that this charge is both disrespectful and offensive to the bargaining committees involved. GM has dedicated substantial efforts to engage in direct and sincere negotiations with the UAW, and they are pleased to report that progress is being made.
The speed at which the negotiations are progressing relies on how fast both sides can come to a resolution on almost 1,000 requests from UAW, with over 90 being brought up just this week. Our objective remains unchanged - to reach a mutually beneficial agreement that doesn't cause any interruptions, while also ensuring our team members are rewarded and securing the future of the entire GM team," stated Johnson.
Stellantis expressed the same feeling.
Stellantis stated that they haven't received the submission, but they are surprised by Mr. Fain's accusations that they have not negotiated honestly. In their statement, they expressed that these claims have no factual grounds, and they are saddened to find out that Mr. Fain is prioritizing filing baseless legal charges instead of engaging in meaningful negotiations.
"We will strongly uphold our stance against this accusation in due time, but at present, our main priority lies in persistently negotiating with sincerity for a fresh agreement. We will not let Mr. Fain's strategies divert our attention from the crucial task of safeguarding our employees' future."
