UAW strike Day 25: Historic economic losses, GM releases details of the latest offer
(CBS DETROIT) –The United Auto Workers strike against Detroit's three big automakers is breaking records.
According to data released Monday, the third week of the walkout resulted in more than $5 billion in economic losses, 1 billion more than the General Motors strike in 2019.
While UAW president Shawn Fain paid a visit to members on strike in Chicago over the weekend, bargaining teams were huddled up at UAW Solidarity House trying to broker a tentative agreement.
On Monday, General Motors announced details about its latest offer.
In its sixth offer, GM offered a 20% pay rise over the course of the contract–half of that will hit workers' bank accounts in year one.
By the end of the contract, GM says almost all of its UAW workers will make about $82,000 a year.
GM is also willing to reinstate the cost-of-living allowance for team members at max wages, starting in year two.
These details come after the automaker agreed on Friday to include its battery plant workers in the UAW's national labor agreement.
"It really sets a precedent, and the UAW is going to go to the others and say we won't agree to a tentative agreement with you if you don't do the same," said Marick Masters, professor of management at Wayne State University's Mike Ilitch School of Business.
Masters believes if both sides can close the gaps over wages and retiree health care, it would mark significant progress in week four of the strike.
"Even though, it's not a majority of their membership that's out on strike. Eventually, they're going to have to get to a point where they force the kinds of concessions that they think that companies can make, and they can get this thing settled," Masters told CBS News Detroit.
The Anderson Economic Group estimates the first three weeks of the standup strike have cost the industry $5.5 billion.
Those losses so far include:
- Direct Wages Lost - $579 million
- Detroit 3 Manufacturer Losses - $2.68 billion
- Supplier Losses - $1.6 billion
- Dealer and Customer Losses - $1.26 billion
And while the three automakers were spared a strike expansion last week, they may not be this week.
"They're gonna say, we're going to be just as tough this week, as we were last week, we're taking it by week-by-week, day-by-day, and if progress isn't being made, then we're going to call the shots," Masters said.
Across the river, the Canadian auto workers union, Unifor, says GM is resisting a number of key elements that were in the deal workers secured with Ford last month.
If a tentative agreement with GM isn't reached by 11:59 p.m. Monday, more than 4,000 workers there will go on strike.
