Published: Tue, October 15, 2019
Markets | By Otis Pena

UAW approves increased pay for striking General Motors, Aramark workers

UAW approves increased pay for striking General Motors, Aramark workers

The UAW approved a 10% increase in pay for the 46,000 GM-UAW members out on strike.

United Auto Workers said on Saturday it's increasing strike pay for workers picketing at General Motors as the walkout by more than 49,000 employees nears the four-week mark.

Talks were continuing late Saturday afternoon to try to resolve the longest nationwide strike at GM since 1970, both sides said. This is not the first time a counterproposalhas been offered.

Most recently, the UAW had submitted another counter proposal to GM, which was under review.

It moves up the timing of a US$25 weekly raise that had been planned to go into effect on January 1.

"Meanwhile, the latest GM proposal which appealed directly to employees bypassing union had ratcheted up heats further between the Union and the leading USA automaker, as a top UAW official had been quoted saying following GM's latest proposal, "(The automaker) They were trying to starve.

It is not clear when GM will respond to the proposal, but union officials say they will be working through the weekend.

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The UAW-GM strike isn't the only strike the union has going as it works through the negotiation process with two other companies: Aramark Corp. and Mack Trucks Inc.

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 US factories.

Flemington Car and Truck Country chairman Steve Kalafer speaks on the GM-UAW strike.

The automaker and UAW have been exchanging and reviewing contract proposals since July.

Of the new total, $7.7 billion would be invested directly in GM plants and the rest in joint ventures including a potential battery plant near the Lordstown, Ohio, factory that has been idled, the source said. The offer additionally gives employees enhanced profit-sharing with unlimited upside and improves their ratification bonus.

Both sides discussed the issues that include wages, job security and investment in United States plants.

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