GM CEO Mary Barra sent a letter to employees Thursday saying the company’s latest offer now include a 20% raise, with an immediate 10% pay hike. The union started with a demand for an immediate 20%, and four additional raises of 5% each over the course of a four-year deal.Īnd all the automakers issued statements saying they want to reach tentative labor deals to end the strikes as soon as possible. The union has vowed to fight to get the laid off members any benefits they deserve.Īll three companies say they are now offering a 20% raise during the life of the contract with a 10% raise at the start. Sub pay is far more lucrative, covering most of the gap between unemployment benefits, typically less than $300 a week, and normal company pay, which can be close to $1,300 a week. There are some other states, such as Kentucky and Tennessee, where they would be able to receive unemployment benefits, according to the officials.īut the companies said any worker laid off because the strike disrupted operations at their facility would not be eligible for so-called “sub-pay,” which they typically receive during temporary layoffs. There also are legal questions in different states about qualifying for unemployment.Īn official with Ford told reporters Thursday that under state law, workers in Michigan and Ohio were not eligible to receive unemployment benefits if they were laid off due to lack of parts at their plant caused by a strike. Strikers are not eligible for unemployment benefits, but workers who are on temporary layoff can receive the benefits, which differ by state but would be less than the union’s $500 strike pay. That could make them eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources. With targeted strikes, it’s possible that the companies will shut down operations and lay off members who are not technically on strike. If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund. The 4 key reasons why the UAW could strike GM, Ford and Stellantis this week United Auto Workers members and others gather for a rally after marching in the Detroit Labor Day Parade on Septemin Detroit, Michigan. Striking union members are eligible for $500 a week from the union’s strike fund. One advantage of a targeted strike for the union is the potential to save resources and extend a possible walkout. Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said. “Two plants per company, you can pretty much idle North America,” he said. One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant. Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts. The companies operate a complex network of plants that depend on getting parts from different facilities. But the impact could have been much broader even with only a handful of plants being struck. These three plants being out will stop production of some specific vehicles, including the Ford Ranger pickup and Bronco SUV, the Jeep Wrangler and the Chevrolet Colorado pickup. Workers walked off the job there, picketing outside the plants Friday morning. ![]() UAW President Shawn Fain announced that workers at a GM plant in Wentzville, Missouri a Stellantis plant in Toledo and a Ford plant in Wayne, Michigan – would go on strike. Here’s what to know now that the strike has begun: ![]() With no deal reached by the contract expiration, the union said it has started targeted strikes against three facilities – one at each company. The contracts covered 145,000 UAW members at the three companies: General Motors, Ford and Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands for North America. The United Auto Workers contracts expired at 11:59 pm ET on Thursday. America’s auto industry is facing a historic challenge.
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