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GM Improves Offer to UAW, Includes 20% Wage Raise

General Motors (GM) has made a new offer to the United Auto Workers (UAW) union in an effort to avoid a potential strike. The proposal includes substantial pay increases, additional vacation days, and improved benefits for retirees, among other perks. While the offer addresses many of the union’s demands, it falls short on others, such as the UAW’s request for a 40% pay increase over the four years of the deal.

Key elements of GM’s latest offer include:

Wages: A 20% increase over the four-year term of the contract, with a 10% raise in the first year, up from GM’s previous offer of 18%. This is still short of the UAW’s demand for 40% pay increases over the contract term.

Faster Path to Top Pay: Newly hired workers would reach top-level wages in four years, down from the current eight years. The UAW has been pushing for an end to the tiered wage system.

Inflation Protection: GM’s offer includes some level of cost-of-living protection for maximum wage earners to keep pace with inflation, though the details are unspecified. The UAW has sought a more generous system used in the past.

Job Security: GM commits not to close any of its U.S. manufacturing or warehousing facilities during the contract’s duration.

Work-Life Balance: GM offers up to five weeks of vacation and two weeks of parental leave. This aligns with Ford’s recent offer, but the UAW has been requesting more time off, including a four-day workweek.

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