The UAW is making a new offer for the Chrysler parent

The UAW is making a new offer for the Chrysler parent

The United Auto Workers union presented a new proposal to Stellantis, Chrysler’s parent company, on Thursday just one day before a planned strike at other Detroit Three plants. However, despite the long talks, no significant progress has been made in the talks, reports.

A union official confirmed receiving new offers from Stellantis, General Motors ( GM.N ) and Ford Motor ( FN ) after fourteen days of negotiations.

The UAW and the Detroit Three have significant differences on key issues. The UAW position calls for workers to receive a 40% wage increase, compensation for cost-of-living increases based on inflation, job security or wages, an end to wage cuts for workers with limited tenure, and defined benefit pensions. .

One of the most important issues in the negotiations is still the payment of workers involved in the production of batteries for electric vehicles. Ford announced this week that it would halt construction of a $3.5 billion battery plant in Michigan over concerns that it would be uncompetitive, prompting anger from the UAW.

Automakers are offering 20% ​​wage increases, but cutting cost of living and retirement benefits. Additionally, the automakers disagree with the UAW’s demand that new hires receive a higher wage after 90 days on the job. The UAW did not comment on a Bloomberg report Thursday that union negotiators were targeting a 30% wage increase, including cost-of-living adjustments.

GM shares rose 2.5% and Ford rose 1.4%.

UAW President Sean Fein plans to announce the union’s next steps Friday at 10 a.m. ET (1400 GMT) in an online address. Thursday saw a sharp increase in activity after a week that saw no progress in contract talks.

On Tuesday, Fein welcomed President Joe Biden’s historic visit to the union’s voting booth. Fein met with GM officials on Wednesday.

Stellantis and GM have yet to comment on the situation. Earlier Thursday, Stellantis criticized the UAW’s remarks.

The use of inflammatory and violent rhetoric is dangerous and must stop. Corporations are not “enemies” and we are not at “war.” Stellantis said the UAW has made record terms in negotiations and is working hard to reach an agreement.

Last week, the UAW strike expanded to 38 GM and Stellantis parts distribution centers, starting with three assembly plants, one for each Detroit automaker. However, the strike did not affect Ford plants as progress had been made.

As a result of the strike, Stellantis was forced to lay off more than 350 workers in Ohio and Indiana. Ford laid off 600 workers at its Michigan plant, and GM cut 2,000 jobs and temporarily halted production at its Kansas plant.