General Motors makes Wage Offer, which Auto Union Leader Calls 'Insulting'

September 8, 2023: On Thursday, General Motors offered its most significant four-year wage increase in decades as part of a recent contract proposal to the United Auto Workers, as the automaker attempts to avoid another costly strike by its unionized workforce.

The wage increase for most of GM’s UAW-represented workers would be 10%. At the same time, in-progress employees would be suitable for up to a 56% wage increase over the four years of the deal, the company announced after meeting with union leaders and negotiators.

Temporary workers who supplement full-time employees would receive 20% wage increases to roughly $20 an hour.

Under the current pay structure, UAW partners start at approximately $18 an hour and have a “grow-in” period of four years to reach a top wage of more than $32 an hour.

GM’s proposed contract also includes two additional 3% lump sum payments resulting in a total wage increase of 16%; a $5,500 ratification bonus; $6,000 one-time inflation-recognition payment; and $5,000 in inflation-protection prizes over the life of the agreement, which in-progression employees are eligible.

Despite the proposed wage increase being the largest under a UAW contract since 1999, it still drops far short of the union’s demands of a 40% hourly pay increase, a reduced 32-hour work week, a shift back to traditional pensions, elimination of compensation tiers, and restoration of cost-of-living adjustments, among other items on the table.

UAW President Shawn Fain was not impressed by GM’s proposal, calling it “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.”

“GM either doesn’t watch or isn’t listening when we say we need economic justice at GM on September 14. The clock is ticking. Stop wasting our members’ time. Tick tock,” Fain said in an emailed statement.

The proposal from General Motors comes a week after the union filed unfair labor practice which charges against GM and Stellantis to the National Labor Relations Board for not talking in good faith or a timely manner.