The UAW has filed unfair labor practice charges against General Motors and Stellantis for "an illegal refusal to bargain in good faith” during ongoing contract negotiations, union President Shawn Fain announced Thursday night.
The news "shocked" Stellantis, which said it will "vigorously defend" itself against the charge. GM also was "surprised" and said it will strongly refute the charge.
Meanwhile, Fain told viewers of his online livestream that Ford Motor Co. responded to the union's demands, but fell short of what he considers to be a fair contract. The union asked for a 40% hourly wage increase and a return of a cost-of-living adjustment (COLA). Fain said Ford offered a 9% general wage increase over the life of the contract and instead of COLA, a one time lump sum bonus. Then he tossed Ford's offer in a trash can.
UAW Shawn Fain gives a contract update to workers via a Facebook and YouTube live presentation on Aug. 31, 2023.
"Ford’s proposal not only fails to meet our needs, it insults our worth," Fain said. "As of today, the company’s on track to reward shareholders, on our hard work, with a whopping 150% increase in dividends. We will not accept anything less than consistent living wages that will grow with the economy.”
The news prompted Ford CEO Jim Farley to issue a lengthy rebuttal detailing the proposal Ford made and calling it, a "generous offer" that still protects the financial future of the company.
Sept. 14 'a deadline, not a reference point'
Fain gave the UAW's demands to the Detroit carmakers four weeks ago and told them he expected a response by this week, he said.
"I’ve told them repeatedly that Sept. 14 is a deadline not a reference point," Fain said, referring to the current contract's expiration at 11:59 P.M. that day and his promise he would not seek an extension.
"I am sad to report the Big 3 are either not listening or not taking us serious," Fain said. "Their top leadership has ditched bargaining and refused to do the work to get a fair contract. So today our union filed unfair labor charges against GM and Stellantis with the NLRB (National Labor Relations Board)."
In a statement, Stellantis spokesperson Jodi Tinson said the company had not received the filing, but "is shocked by Mr. Fain’s claims that we have not bargained in good faith. … This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining. We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement. We will not allow Mr. Fain’s tactics to distract us from that important work to secure the future for our employees."
GM indicated it was equally taken off guard by the union filing charges.
“We are surprised by and strongly refute the NLRB charge filed by the International UAW,” Gerald Johnson, executive vice president of Global Manufacturing, said in a statement. “We believe it has no merit and is an insult to the bargaining committees. We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress. The pace of negotiations is based on how quickly both parties resolve nearly 1,000 UAW demands, including more than 90 presented this week. Our goal remains the same - to achieve an agreement without a disruption that rewards our team members and protects the future of the entire GM team.”
Ford's proposal fails
Fain said he met with Ford leaders on Tuesday and the company gave him the counterproposal. He reminded viewers that Ford made $10.4 billion in profits last year and is on track to surpass that this year.
Fain said:
Ford rejected the unions proposal to end tier wages.
Ford rejected all of the UAW's job security proposals.
The UAW proposed an enhanced profit sharing formula of $2 for every million Ford spends on stock buybacks. Ford countered with a formula that would pay workers 21% less than the current formula, he said.
Ford rejected all demands to increase retiree pay, he said.
Ford has rejected the union's quality of life proposals including a 32-hour work week or allowing members to have Juneteenth as a holiday.
Ford's response
In a statement, Ford CEO Farley said the automaker has exceeded its commitments to add union jobs and invest in facilities over the last three contracts. He said the 9% hourly wage increase is the largest since the 1999 contract and most of it would take effect in the first year, with 6% lump sum rewards.
That means wages (including overtime) and lump sum bonuses for hourly workers would increase from an average of $78,000 a year in 2022 to $92,000 in the first year of the contract.
"After extensive negotiations, Ford has presented a generous offer on the upcoming contract that would provide our hourly employees with 15% guaranteed combined wage increases and lump sums, and improved benefits over the life of the contract," Farley said.
On top of $92,000 annually in wages and bonuses, workers would receive health care coverage worth $17,500 and other benefits worth an additional $20,500 in the first year. Full-time permanent Ford employees at the top wage rate could be paid $98,000 that includes wages, cost-of-living adjustment bonus, ratification bonus, profit sharing and overtime, in the first year of the contract, Farley said.
Farley called it an "important" deal for workers that would also give Ford the flexibility to transition to more electric vehicles.
"This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing," Farley said.
He said the offer "fully eliminates wage tiers so all employees can achieve industry-leading wages."
Popular support
Fain said Wednesday a Gallup poll showed 67% of Americans approval of labor unions and three out of four support the UAW's 150,000 members in their demands with the Detroit carmakers.
The UAW, which officially started its negotiations with the Detroit carmakers in mid-July, has decided to forego naming a target company to secure a contract with and use as a pattern for the other two. On Friday, after union members voted to give leaders the OK to strike if a tentative contract agreement cannot be reached when the current contract expires, Fain said, “We’re not picking a target company. We expect all three to bargain with us and all three to be done by Sept. 14. We want contracts by Sept. 14 by all three.”
Unifor — the union that represents autoworkers in Canada — is following a more traditional route. On Tuesday, it chose Ford Motor Co. as the automaker it will negotiate a new labor contract with first.
Fain ended his presentation saying it has been a difficult week, but is still confident the union can reach a fair contract with the Detroit Three.
"We can get there, we can get there, but these companies have to buckle down and get serious," Fain said.
