General Motors tried to avoid a looming strike by the United Auto Workers union through a new offer Thursday that includes significant pay increases, more vacation days and better benefits for retirees, among other perks.
The proposal, which GM CEO Mary Barra called “compelling and unprecedented,” addresses many of the union’s demands but continues to fall short on others, such as a 40% pay increase over the four years of the deal that UAW sought.
Ford sources said the automaker would have lost $14.4 billion over last four years if the current demands had been in effect, instead of recording nearly $30 billion in profits. UAW President Shawn Fain seems determined to achieve those terms.
The sources, who agreed to speak on the condition of anonymity due to the ongoing discussions, also pushed back on the UAW’s argument that members aren’t making a living wage. They said the average compensation under Ford’s current proposal for first-year UAW employees would be $132,000, including $92,000 in cash and $17,500 in health care coverage.