The United Auto Workers (UAW) union is reportedly pressing the Detroit car companies to give its factory workers a 40% pay hike in the next labor contract.
The union conveyed this demand to the automakers this week, along with a list of other items it plans to push for at the bargaining table, reported the WSJ.
The UAW is negotiating new four-year labor agreements for around 150,000 hourly workers at General Motors Company
According to a UAW representative, the average CEO remuneration at Detroit automakers has risen by 40% over the current contract. "We believe UAW members deserve the same, if not more."
UAW President Shawn Fain has outlined a list of 10 demands that he plans to bring to automakers, including the right to strike over plant closures, the re-establishment of some retiree benefits, and a defined pension plan for all workers.
The union also wants the reintroduction of cost-of-living adjustments and other benefits given up in earlier discussions to assist car companies survive financially, added the report.
GM reportedly stated that it intends to raise worker wages but that the union's present demands would jeopardize the company's capacity to support hourly workers in the long run.
Ford stated that it looks forward to working with the UAW, while Stellantis noted that it had a fruitful discussion with the UAW head on Tuesday and will review the union's demands.
The UAW also demands increased job security for its members, particularly as the auto industry is shifting to a new generation of electric vehicles.
Price Action: GM shares are trading lower by 0.26% at $36.82 on the last check Friday.
