US automaker General Motors offers 10% wage hike, workers' union calls it ‘insulting’

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wage hike and two additional 3% annual lump sum payments over four years in its offer to the union ahead of the Sept. 14 contract expiration. GM shares closed down 0.8% to $32.57.

Stuck in a similar deadline by auto workers, Ford announced to offer 9% wage increase through 2027 and 6% lump sump payments, much less than the 46% wage hike being sought by the union through September 2027. Earlier on Thursday, Ford said about 8,000 U.S. workers represented by the UAW will get an average $4.33 an hour in additional pay under provisions of the current contract agreed in 2019.

Stellantis said it also raised pay this week for 4,000 workers per the 2019 contract.can A total of 97% of members voted in favour of authorizing a strike if agreement is not reached, said UAW, reported Reuters. Ford was expected to make counter offer on Thursday, reported the news agency citing sources. Shawn Fain represents 1,46,000 workers at the Detroit Three.

Looking at the stark difference between the demand for hike and the percentage offered by GM, he called its offer “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.... The clock is ticking. Stop wasting our members’ time.

Tick tock." The UAW said the GM offer would change the formula for calculating profit sharing and if it had been in effect last year, workers would have received 29% less. The UAW also said Ford's proposal would have cut profit sharing by 21%. The union's demand also include 205 immediate wage increase.