GM explains latest offer to striking UAW workers

GM appeals directly to UAW workers: 'The strike has been hard on you, your families ...'

GM appeals directly to UAW workers: 'The strike has been hard on you, your families ...'

General Motors CEO Mary Barra requested United Automobile Workers committees resolve their issues and provide a "comprehensive proposal" during a meeting Wednesday, according to UAW-GM Vice President Terry Ditttes.

The GM statement says the company's offer would "increase compensation through wages and lump sum payments, preserve industry-leading health care benefits without increasing out-of-pocket costs, enhance profit-sharing with unlimited upside and improve the ratification bonus".

It also promises billions of dollars worth of investment in US facilities, creating thousands of new jobs.

"We object to having bargaining placed on hold pending a resolution of these five areas", Sandefur wrote October 10 to UAW Vice President Terry Dittes in a letter obtained by Bloomberg News.

This is the 26th day of the strike.

Read the full letter to GM employees here.

"We have advised the Union that it's critical that we get back to producing quality vehicles for our customers", GM Executive Vice President Gerald Johnson wrote in a letter to employees.

"At every step of the way, GM has attempted to undermine the ongoing, good-faith efforts the UAW has made to end this strike", the union said.

For temporary workers, GM said its offer would create a path to permanent employment and include a ratification bonus.

More news: Apple Touts Games, Music, TV in macOS Catalina
More news: Expecting little out of US-China trade talks
More news: Could Turkey's military moves destabilise north Syria?

"While investors may look through the one-time impacts.the strike reminds us of the challenge of investing in OEMs at this point in the cycle", analyst Dan Levy wrote in a note. Our success depends on one another.

UAW officials have been pushing for the company to move entire auto manufacturing lines to the USA from Mexico, which they say will increase job security.

Apart from costing GM more than $1 billion, the work stoppage has forced it to idle United States operations along with almost 10,000 workers in Canada and Mexico.

Dittes said that he did not know when the five issues would be resolved, suggesting a final deal may not be close.

Thus far it is estimated that GM has lost about $1 billion from the strike.

But the company, in a Thursday letter to Dittes, said that GM expected the union to move more quickly and respond to the larger offer before the committee work is done.

In it, Dittes said the union would respond to the company's offer once various negotiating committees working on specific issues work out their differences.

UAW workers are concerned that as GM shifts to more electric vehicles it will require fewer workers, and battery production may result in workers getting paid less than at existing transmission plants. Of that, $7.7 billion of that would be direct investments, including building an electric truck at the Detroit Hamtramck Assembly plant. GM says it has found other jobs for 2,300 of the 3,000 workers who worked in those plants, but many had to relocate.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.