NASHVILLE, Tenn. (WTVF) — United Auto Workers across the country could be on strike by this time tomorrow, including the GM plant in Spring Hill, TN. The question is, will the two sides be able to cut a deal by midnight?
Today could potentially determine if there's a big hit to the economy over the next few days or not as a strike from workers could be costly to both the auto plants they work for and for the general economy.
GM said a six-week strike in 2019 costs them almost $3 billion.
This week both sides have been exchanging offers and negotiating long hours, but they still appear to be far apart on wages and benefits.
United workers want a total of a 46% pay increase. Automakers are negotiating only about half of that. In addition to general wage increases, the union is seeking an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and a return of cost-of-living pay raises, among other benefits.
If the union strikes all three automakers at the same time, General Motors, Stellantis and Ford, it would be the first in the union's 80-year history. A strike would affect thousands of workers at the G-M Plant in Spring Hill.
Governor Bill Lee spoke on the impending strike by saying, “It’s certainly not good for the folks that are employed there and that work there. That’s an issue that the union will have to work out with the company.”
GM says its goal is to reward employees and invest in the future. The UAW says they're committed to their demands.
"We have repeatedly told the companies since day 1 that September 13 is a deadline not a reference point. We will not allow the big three to continue dragging out negotiations for months. The companies know what our priorities are, and we have been very clear,” said UAW President Shawn Fain.
The union and the companies have said they are willing to talk in an effort to work out deals before the deadline. Last week Fain stated that he threw counteroffers from the companies into the trash, and he accused the companies of being slow to make wage and benefit offers. This week there was optimism on both sides that they still could reach deals before Thursday night’s deadline.
Tuesday night Ford CEO Jim Farley said the company submitted a new offer to the union “that’s our most generous offer in 80 years of the UAW and Ford.”
The offer gives pay increases, eliminates different tiers of wages, has protection against inflation and makes bigger contributions to retirement plans.
“It’s a significant, significant enhancement,” he said. “I’m still optimistic that we’ll get a deal, but there is a limit.”
Farley ruled out a union demand for a 32-hour work week for 40 hours of pay but said it’s still possible to avoid a strike.
GM President Mark Reuss said Tuesday that a lot of progress had been made in the past few days. Reuss said GM’s goal is to reward employees while also investing in the future.
Last known offers from GM and Ford were 10% raises over four years with lump sum annual payments in the years that raises are not awarded. The last known offer from Stellantis was raises of 14.5% over four years with no lump sums for wages.
The union is says they’re waiting on their demand to be met before the deadline tonight to determine if there will be a strike tomorrow.
