The United Auto Workers union said Saturday it will boost strike pay for 48,000 hourly workers at General Motors Co GM.N by $25 a week to $275 as a strike against the largest US automaker nears the end of its fourth week. They say if GM would have agreed to a deal weeks ago, they would be ahead of the game.
The UAW also moved to underscore its determination by raising the strike pay by $25 per week and beginning a strike against the heavy truck manufacturer, Mack Truck. GM has confirmed that it has received the offer, and it is under review.
Union members, to the surprise of some observers, have been remarkably supportive of the walkout, which the strikers have readily admitted has many of them facing financial hardship.
About 7% of GM's hourly workforce are temporary workers. This is not the first time a counterproposalhas been offered. It's not clear if GM has since revised any proposals. Factories in Canada and Mexico were later forced to close due to a lack of parts.
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GM, which probably lost production of about 100,000 vehicles in the third quarter, is at the danger of losing 170,000 more vehicles in the current quarter, the brokerage stated, with the impact spreading to some of automaker's facilities in Mexico and Canada that receive parts from its USA factories. Credit Suisse estimated the loss could hit about $1.5 billion, and the Center for Automotive Research estimated the weekly costs to GM and the UAW strike fund at $450 million and $12 million, respectively. He said the parties would have a tentative agreement if GM accepted it.
The automaker and UAW have been exchanging and reviewing contract proposals since July. The offer additionally gives employees enhanced profit-sharing with unlimited upside and improves their ratification bonus.
More than 3,600 UAW members employed by Mack Trucks walked off the job Sunday over issues including wage increases, job security, wage progression, and health and safety issues.