United Auto Workers rejects wage offers from Detroit companies with strike deadline 6 days away

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Negotiations are continuing through the weekend, but Union President Shawn Fain warned that if there aren’t agreements by 11:59 p.m. Thursday “there will be a strike at all three if need be.”

United Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019.

Ford’s counterproposal offered 9% raises over four years, but it also included lump sum payments, while GM’s offered 10% plus lump sums. All three companies offered additional lump sum payments to cover inflation. In addition, the counteroffer includes boosting hourly wages from $15.78 to $20 for temporary workers and speeding up the progression timeline from eight years to six years for employees who are moving through the pay scale from starting wages.

A strike against all three major automakers could cause damage not only to the industry as a whole but also to the Midwest and even national economy, depending on how long it lasts. The auto industry accounts for about 3% of the nation’s economic output. A prolonged strike could also lead eventually to higher vehicle prices, and shift sales largely to Asian automakers with U.S. factories.

 

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