General Motors' latest offer to UAW calls for reinstatement of cost-of-living adjustment, 25% compounded wage increase
(CBS DETROIT) - Ahead of United Auto Workers President Shawn Fain's strike update on Friday afternoon, General Motors issued its latest offer to the union, calling for a reinstatement of the cost-of-living adjustment and a 25% compounded wage increase.
GM issued the following statement on its latest offer:
"Today, General Motors provided a comprehensive offer to the UAW. We have made substantial movement in all key areas in an effort to reach a final agreement with the UAW and get our people back to work.
The offer on the table is the most significant that GM has ever proposed to the UAW and recognizes our team members for all their dedication and contributions. The majority of our workforce will make $40.39 per hour, or roughly $84,000 a year by the end of this agreement's term. We also continue to provide world-class health care with no out-of-pocket premiums or deductibles for seniority team members.
It is time for us to finish this process, get our team members back to work and get on with the business of making GM the company that will win and provide great jobs in the U.S. for our people for decades to come."
What GM is offering to most UAW employees
The automaker's latest offer calls for a 25% compounded wage increase, with a 10% increase in Year 1. UAW employees at GM could make up to $40.39 an hour or $84,000 a year. The company would reinstate the cost-of-living adjustment for seniority team members, with GM forecasting that COLA payouts to employees would increase pay by over 30% during the contract.
GM is offering up to five weeks of vacation, Juneteenth and two weeks of paid parental leave, as well as $0 healthcare premiums and deductibles for all seniority team members and a ratification bonus for all team members.
What GM is offering to temporary and in-progression employees
GM is offering temporary team members a wage increase of 26%, boosting pay to $21 an hour. Temporary employees who have worked at least 1,000 hours would be eligible for profit sharing and a faster path forward to earning maximum wages.
The automaker also says that all full-time temporary employees with one year of employment will automatically be converted to seniority at ratification.
GM's offer calls for improved retirement security
GM would increase the Basic Benefit Rate by 5% for a traditional team member pension plan and increase its contributions for healthcare in retirement from $1 to $1.25 per hour worked.
The company would also increase contributions from 6.4% to 8% of annual wages, regardless of an employee's contribution.
For the latest on the UAW strike, visit here.