UAW Open to 25% Raises for Members: Report

UAW-strike-Ford-GM-Stellantis

The union, which originally sought a 40% raise, could be closer to reaching an agreement with Ford, GM and Stellantis, which have all offered 23%.

A recent report suggests the United Auto Workers (UAW) union is now open to raises totaling at least 25% from Ford, General Motors and Stellantis---a notable reduction from the 40% raise the UAW initially proposed, but a substantial increase nonetheless.

The number is close to the 23% increase proposed by the Detroit Big Three. With a 25% increase, top hourly wages for union members would hit about $41.20 in 2027. Ford, GM and Stellantis’ 23% offer would put top earners at about $40.39 per hour in 2027.

Citing sources familiar with the matter, Automotive News said the difference in the union’s demand and the Big Three’s offer would translate to about $3,100 per worker over the entirety of the contract. Considering the losses the six-week strike has given the automakers so far, the costs associated with a wage increase could be worth it.

The UAW has been particularly ambitious with its demands, initially asking for 40% wage gains. The union later adjusted its demands to 36%. Despite 25% being significantly less, such an amount would still fit UAW President Shawn Fain’s goal of securing a substantial “double-digit” wage increase for its members.

The UAW’s strike against the Big Three has been escalating in recent weeks. Now in its 40th day, the protests have expanded to some of the automakers’ most critical facilities. Ford’s biggest plant, the Kentucky Truck Plant, was hit by the UAW earlier this month. This was followed by a walkout at Stellantis’ Sterling Heights Assembly Plant, and more recently, GM’s Arlington Assembly Plant. All three facilities produce profitable vehicles for Ford, GM and Stellantis.

Automotive News' source claimed talks between the UAW and Stellantis are “very active." The union is also reportedly preparing a new offer to GM and waiting for an updated offer from Ford, though the union has said the company’s offer has been the best to date.

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