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GM,
Ford Motor and Chrysler-parent Stellantis last month opened
contract talks with the United Auto Workers (UAW) union ahead of
the Sept. 14 expiration of the current four-year labor deals.
GM manufacturing chief, Gerald Johnson, said on Friday he did
not agree it would need fewer workers for EV production.
"We actually expect our employment numbers to grow in 2024,"
Johnson said in a video message.
Last year, Ford said EVs, which are simpler and have fewer
mechanical parts, will require 40% less labor to build than
current internal combustion engine (ICE) vehicles. GM has vowed
to end the sale of new ICE vehicles by 2035.
Another key issue in the talks involves pay and treatment of
workers at GM's joint venture battery plants.
Separately, CFRA Research on Friday downgraded GM on concerns
about a possible strike after the UAW sought large pay and
benefit hikes. GM shares closed down 1% to $36.57.
Stellantis said on Friday it intends "to fairly reward our
represented employees for their contributions to the success of
the Company. However, it will be critical to find common ground
that doesn’t jeopardize our ability to continue investing."
The UAW is seeking a pay hike of more than 40% over the life of
the four-year contract, including an initial 20% hike upon
ratification and 5% annual wage hikes starting in September
2024, according to sources and a copy of the proposal.
GM said on Thursday the UAW proposals "would threaten our
ability to do what's right for the long-term benefit of the
team."
The union is seeking substantial wage and benefit changes,
including defined-benefit pensions for all workers and shorter
work weeks.
It wants to make all temporary workers at U.S. automakers
permanent, a substantial increase in paid time off and restore
retiree health care benefits and cost of living adjustments. The
UAW wants new limits on temporary workers and for them to
receive profit sharing.
UAW President Shawn Fain on Tuesday expressed support for a
32-hour work week, down from the traditional 40 hours.
Sources said the union wants the companies to agree to the
equivalent of a paid day-off per week, at a time of growing
trials globally of a four-day working week.
(Reporting by David Shepardson; Editing by Marguerita Choy)
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