GM confirms future wage hike for UAW members, but other demands 'threaten' company health

General Motors is confirming it will raise wages for UAW members, but other UAW demands in ongoing contract negotiations would "threaten" the company's ability to do what's right for the long-term benefit of all employees.

The Detroit Free Press, part of the USA TODAY network, first reported last month that GM is expected to offer a wage increase for its 50,000 hourly workers in the new contract. But the automaker is not as ready to return cost-of-living adjustment benefits, which is a raise to keep up with inflation, the sources said.

On Thursday, GM issued a statement on its negotiations web site, gmnegotiations2023.com, confirming a wage increase. The statement was in response to a Tuesday Facebook live broadcast in which UAW President Shawn Fain outlined demands of members in a new four-year contract being negotiated with the Detroit Three automakers on a Sept. 14 deadline.

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Fain said he'd like also to see a 32-hour workweek to give members more time with their families, citing COVID-19 as showing the world the value of a work-life balance.

Fain listed these other demands that he'd present to automakers:

• elimination of wage tiers
• substantial wage increases
• restoration of cost of living allowance increases
• defined benefit pension for all workers
• reestablishment of retiree medical benefits
• the right to strike over plant closures
• limits on the use of temporary workers
• more paid time off
• increased benefits to current retirees

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In response Thursday, GM said it has to balance doing what's best for its business with valuing its employees.

"Our focus is on doing what is right for our team members, our customers, and the business. And we expect increased wages for our represented team members because, as we have said many times before, our manufacturing team is our competitive advantage."

GM noted it has invested "tens of billions of dollars in the future of U.S. manufacturing" to create a long-term future for the company and employees. But, it said, "The breadth and scope of the Presidential Demands, at face value, would threaten our ability to do what’s right for the long-term benefit of the team. A fair agreement rewards our employees and also enables GM to maintain our momentum now and into the future."

GM has pledged to spend $35 billion by 2025 to transition the company to sell all EVs by 2035. The company has said the entire workforce can benefit from "leading in the EV transformation," adding that "it’s important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition."

A UAW spokesman did not immediately respond to a request for comment.

Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.