General Motors Makes Counteroffer to UAW in Effort to End Strike

General Motors (GM) has announced that it has presented a counteroffer to the United Auto Workers (UAW) in an attempt to bring an end to the ongoing strike against the automaker. The strike, which began on September 15, is the first-ever targeted strike against the Detroit Three automakers, including Ford and Stellantis.

GM’s counteroffer marks the sixth offer made by the company since negotiations with the UAW began. While the UAW presented a new contract offer to GM earlier this week, significant gaps still remain between the two parties. However, there has been movement in a few key areas, according to a source familiar with the talks.

Negotiations between the UAW and Ford have also shown progress, with the automaker offering a comprehensive new proposal that includes a more than 20% general wage increase in the first year alone. When combined with cost-of-living adjustments previously offered, the total wage increase offer could reach close to 30% over the contract’s duration.

Despite these positive developments, both Ford and Stellantis have yet to reach agreements with the UAW on other significant issues, such as pay and union representation at future battery plants, as well as the union’s push for a return to retirement plans that guarantee defined benefits.

In the midst of the ongoing strike, GM secured a new $6 billion line of credit on Wednesday, indicating the automaker’s preparedness for a potentially lengthy struggle. The strike has already cost GM an estimated $200 million during the third quarter.

Meanwhile, UAW workers engaged in talks with Volvo Group-owned Mack Trucks have reached a tentative agreement that includes a 19% pay hike over five years.

As negotiations continue, UAW President Shawn Fain plans to provide an update on the status of the talks with the Detroit Three automakers on Friday. Fain has been using these weekly updates to announce expansions of the strike to additional plants at automakers that are not making significant progress towards new labor deals.

General Motors remains optimistic that its counteroffer will reward its team members and position the company for future success. The company believes it has put forth a compelling offer that addresses the concerns of both parties.

The automotive industry and its stakeholders eagerly await the outcome of these negotiations, which will have a significant impact on the future of the Detroit Three automakers and the UAW.