UAW Holds Off On New Contracts Despite Record Pay Hikes
Workers at the United Auto Workers (UAW) union are hesitating over the new contracts offered in the recently started negotiations due to the record-breaking pay increases. The union’s current negotiating team, which is composed of hourly and salaried workers, is arguing that the proposed contracts are ill-suited for their current economic situation with the rising costs of living and healthcare related expenses.
The new contracts, which could last up to five years, would guarantee workers a one time two percent wage increase along with an additional two percent increase over the life of the contract. Although this is just shy of the four percent that is needed to keep employee wages in line with inflation, the UAW on the other hand argues that the offer should come with a raise in base pay and boosts to their benefits package.
The negotiations have been ongoing since September of 2019, with the proposed contracts expected to be voted on by the end of May. Reports suggest that over 80 percent of the worker population are siding with the UAW’s position.
The UAW has cited the looming recession and cost of living increases as the major reasons behind their hesitation to accept the contracts as it is. Union President Gary Jones reinstated their position in a statement, saying, “We understand that companies have to be profitable and competitive. But in return for our sacrifices, we also expect good-paying jobs and fair wages and benefits that help us support our families. Our workers deserve a fair contract that reflects the economic realities facing them.”
This comes in light of the fact that many workers in the automotive industry, including those at UAW, have not seen a significant pay raise in up to ten years. This pay stagnation has caused mounting grievances from the workers whose career development are curtailed due to the lack of appreciation for their hard work.
The pay raises on offer through the new contracts have been suggested to address this issue, however no long-term improvement in wages has been promised. This has left the UAW uncertain, with many believing that a new wave of contract proposals may soon come into negotiations.
If the workers were to reject the contracts, they would be asked to continue with the current contracts that have been in place since 2015. They also estimate that the contract signed in 2017 could remain the ruling document for another seven years.
This hesitation from the UAW is understandable given the current economic climate. However, what it reveals is how these workers are faced even greater financial challenges than their non-union counterparts, and the need for better wages and benefits in order to meet their needs and improve their livelihoods. While the proposed contracts may not be perfect, they will go a long way in potentially addressing some of the long-standing issues facing the workforce.