The major strike in the US automotive industry may be coming to an end!
General Motors and the United Auto Workers (UAW) are moving towards reaching a temporary agreement. It is reported that General Motors has proposed a 20% wage increase over four years, while Ford has proposed a 23% increase. However, the UAW believes that a 20% increase is not enough.
According to the Zhongtong Finance APP, a senior negotiator from the union said that General Motors (GM.US) and the United Auto Workers (UAW) are moving towards reaching a temporary agreement that will end the month-long strike. According to reports, UAW Vice President and General Motors Division Director Mike Booth said on Thursday, "All the pieces are there, we just need to put them together."
General Motors and its competitors Ford Motor Company (F.US) and Stellantis (STLA.US) have been trying to reach an agreement with the union to end the strike that began on September 15. All three companies have offered historic wage increases to UAW employees and have restored inflation protection measures that the union gave up during the financial crisis.
Booth said that the two sides are close to reaching an agreement, but have not yet reached an agreement on wages and pensions. General Motors proposed a 20% wage increase over four years, while Ford proposed a 23% increase. Booth said that the UAW believes that "a 20% wage increase is not enough."
A General Motors spokesperson declined to comment.
The UAW has been striking at some auto plants and has stated that if negotiations do not progress, it will escalate the strike action.
The company and the union are also discussing pensions and healthcare for retired workers. Booth said that the union wants guaranteed pensions, but negotiations can proceed as long as there is a strong plan to protect members.
Booth said that the union met with General Motors' negotiators on Thursday, including CEO Mary Barra, and presented a comprehensive proposal to the company. The two sides will meet again on Friday to continue negotiations.