UAW is suing GM and Stellantis for unfair labor practices

Aug 31 (Reuters) – The United Auto Workers union said on Thursday it had filed unfair labor practices charges with the National Labor Relations Board against General Motors and Chrysler parent Stellantis, saying they had refused to do so. A good faith transaction.

Both GM and Stellants deny the unfair labor charges.

Ford Motor Company (FN) said it offered a 9% wage increase through 2027, which is far less than the 46% wage increase sought by the union.

UAW President Sean Fine said in online remarks that the two sides are far apart. “We will fight hard to get our fair share of justice for the workers,” he said.

Fine said Detroit automakers want the ability to close US auto plants and relocate them to lower-wage states, saying the automakers’ threats to close US plants are “economic terrorism.”

Ford said its “generous offer” would provide hourly employees with a guaranteed 15% combined pay increase, lump sum payments and enhanced benefits.

“Overall, this offer is much better than what we estimate workers earn at Tesla (TSLA.O) and foreign automakers operating in the United States,” Ford said.

The union’s demands include an immediate 20 percent wage increase, defined-benefit pensions for all workers, shorter work weeks, and an additional increase in the cost of living.

Existing four-year labor agreements covering 146,000 workers at the three Detroit automakers expire on September 14.

Fine said neither GM nor Stellantis made counteroffers.

Stellantis said she was shocked by the UAW’s allegations “that we did not negotiate in good faith. This is an allegation that has no basis in fact.” Stellantis also said he was disappointed that Fain is “focusing more on filing frivolous legal charges than on actual plea bargaining.”

Gerald Johnson, GM’s chief manufacturing officer, said the company has strongly refuted the unfair labor charge. Johnson said, “We believe this is without merit and is an insult to the negotiating committees. We have been very focused on negotiating directly and in good faith with the UAW and we are making progress.”

Last week, the UAW said about 97% of voters voted in favor of authorizing a strike if no agreement was reached by Sept. 14.

The UAW also wants to make all temporary workers at US automakers permanent, boost profit sharing, a significant increase in paid vacation, and restore health care benefits for retirees and cost-of-living adjustments.

The UAW said Ford does not want to cap temporary workers and that these workers will not participate in profit sharing, will earn less than 60% of the highest wage rate for permanent workers and will receive fewer health care benefits.

Ford said it would boost the starting wage for temporary workers to $20 an hour, a 20% increase, and offer permanent employees $12,000 in cost-of-living adjustments over the course of the contract.

Ford said that only 2-3% of Ford’s hourly workforce are temporary employees, the lowest percentage among the three Detroit companies.

The UAW said changing Ford’s profit-sharing formula would have cut payments by 21% over the past two years, while Ford said it was offering a $5,500 signing bonus upon contract certification for permanent and temporary workers.

Reporting by David Shepherdson; Editing by Chris Rees and Leslie Adler

Our standards: Thomson Reuters Trust Principles.

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