UAW Pushing Hard for Pay Raises
September 11 2015 - 4:30PM
Dow Jones News
The United Auto Workers union's top negotiators, with only a few
days left until contracts with Detroit auto makers expire, appear
confident that tens of thousands of factory workers are about to
get a raise.
UAW officials have been tight-lipped about the timetable for a
new contract, but negotiators for workers at General Motors Co. and
Ford Motor Co. have both indicated this week that winning higher
wages is a priority. The UAW, for instance, published a video on
Facebook on Friday featuring its vice president in charge of Ford
negotiations, Jimmy Settles, saying it has been too long since the
last raise.
"We haven't had a raise in 10 years," Mr. Settles said. "We're
going to make it happen…it's just how much." That video came two
days after a message from the UAW's lead GM negotiator, Cindy
Estrada, that said the union is addressing "current wage
inequities."
A contract covering about 140,000 hourly workers expires Monday
night, but negotiators are expected to continue talking well past
the deadline. Typically, a so-called target company from among the
Detroit 3—including Fiat Chrysler Automobiles NV—is chosen by the
UAW and that company sets the pattern for the bargaining.
UAW officials have indicated that target will be chosen by
Monday.
GM and Ford have been solidly profitable over the past four
years, leading many UAW workers to demand raises for the
highest-seniority workers (currently making about $28 an hour),
while also making it easier for entry-level workers to be promoted
beyond a job classification that pays roughly $19 an hour.
Mr. Settles said UAW officials are "very determined" to address
wages. "I don't think too many people in America can say they
haven't had a raise in 10 years."
Ms. Estrada, in her message to local chapters of the UAW, said
"we have made it crystal clear that the proposed contract we bring
back to you must address current wage inequities, [and] ensure that
all UAW-GM members get a share of the wealth we are creating."
To win wage increases, UAW officials may need to be creative.
Because Ford and GM have sharply higher all-in hourly compensation
costs than Nissan Motor Co., Toyota Motor Corp., and others, other
benefit costs—such as medical expenses—may need to be
curtailed.
The UAW's Ford negotiators last week released a separate video
saying they wouldn't agree to concessions in this round of
bargaining.
Write to Christina Rogers at christina.rogers@wsj.com
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(END) Dow Jones Newswires
September 11, 2015 16:15 ET (20:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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