UAW plans to make contract counteroffer to Ford – source

By David Shepardson

(Reuters) – The United Auto Workers union on Wednesday plans to make a labor contract counterproposal on economic issues to Ford Motor (NYSE:), a source told Reuters.

Ford said last week it had offered a 9% wage increase through 2027, much less than the 46% wage hike being sought by the union. The UAW expects to receive a proposal from General Motors (NYSE:) on Thursday, added the source, who spoke on condition of anonymity. GM confirmed it will meet with the UAW Thursday but declined to provide any details.

The current four-year labor agreements covering 146,000 workers at the Detroit Three automakers expire on Sept. 14.

GM, Ford and Stellantis (NYSE:) did not immediately comment.

Last week, the UAW filed unfair labor practice charges with the National Labor Relations Board against GM and Chrysler-parent Stellantis, saying they have refused to bargain in good faith. The source said as of Wednesday Stellantis has not yet made a counter proposal.

The union’s demands include a 20% immediate wage increase, defined-benefit pensions for all workers, 32-hour work weeks and additional cost of living hikes.

Earlier, the UAW said about 97% of members voted in favor of authorizing a strike if agreement is not reached.

The UAW also wants all temporary workers at U.S. automakers to be made permanent, enhanced profit sharing and the restoration of retiree health-care benefits and cost-of-living adjustments.

The UAW said Ford wants no cap on temporary workers and that those workers would not participate in profit sharing, would earn less than 60% of the top wage rate for permanent workers and receive inferior health-care benefits.

Ford said it would boost starting pay for temporary workers to $20 an hour, up 20%, and offer permanent employees $12,000 in cost-of-living adjustments over the contract.

The UAW said Ford’s profit-sharing formula change would have cut payouts by 21% over the last two years, while Ford said it was offering a $5,500 signing bonus upon the contract’s ratification for permanent and temporary workers.