UAW union seeks minimum 30% pay increase - Bloomberg

Bloomberg reported Thursday that the United Auto Workers union is seeking a minimum 30% pay increase from Detroit's three major automakers.

Citing people familiar with the matter, the publication stated that 30% is the level the union feels will satisfy existing members and organize non-union plants. It is lower than the around 40% hike it initially proposed to Ford Motor (NYSE: F), General Motors (NYSE: GM), and Stellantis (NYSE: STLA).

The percentage rise takes into consideration a cost-of-living allowance and a general wage increase, according to Bloomberg's sources.

In addition, it is believed that a 30% wage increase would generate interest from non-unionized auto workers and help increase the union's membership.

Bloomberg added that the union's president, Shawn Fain, is aiming to expand the UAW by arranging future electric-vehicle battery plants and targeting workers at Tesla and the US plants of Asian and European automakers, with its membership having declined to 400,000 from over 1 million in the 1970s.

Ford has offered a 20% pay increase with cost of living payments on top, while the UAW has lowered its demand for pay increases to 36%.

By Sam Boughedda

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