The Detroit 3 and UAW remain significantly apart in their contract negotiations as the September 14th deadline quickly approaches. However, there is a noticeable willingness from the UAW to make concessions on crucial terms, especially considering that their initial request, which they self-described as "audacious," appeared to be unattainable.
Recent proposals are asking for a mid-30% raise, rather than the 40% increase the union initially targeted. However, Barclays analysts believe that the possibility of a strike continues to remain high. Nonetheless, there have been some small indications of progress in the negotiation process.
“Things are moving but they’re moving very slow, and we’ve got a long way to go,” UAW President Shawn Fain said during a rally Sunday night.
Fain has, both metaphorically and occasionally literally, “trashed” the automakers' responses during his frequent public appearances.
The new UAW leader explained that the union's initial request for a 40% wage increase for its members is based on the average salary increase that executives in the Detroit automotive industry have received over the past four years.
The UAW's requests for higher wages follow a trend of several prominent labor unions successfully negotiating substantial salary hikes from American corporations. This trend is driven by inflationary pressures affecting workers and a shortage of labor, which has strengthened the confidence of labor leaders.
Shares of STLA and GM are up 1.61% and 0.18%, respectively, in premarket trading Tuesday, while F shares are down 0.49%.