On Thursday night, UAW President Shawn Fain announced that the United Auto Workers have submitted allegations of unfair labor practices to the National Labor Relations Board against General Motors (NYSE:GM) and Stellantis (NYSE:STLA). These allegations pertain to the automakers' purported lack of genuine and timely engagement in bargaining with the union.
The filings were prompted by the companies' failure to promptly address the union's requests, as explained by Fain. Notably, there was no complaint filed against Ford Motor (NYSE:F), as Fain noted that the company did respond to the UAW's demands by presenting a counterproposal that he strongly disapproved of.
“GM and Stellantis’ willful refusal to bargain in good faith is not only insulting and counterproductive, it’s also illegal,” said Fain over a Facebook live video.
“That’s why today, our union filed unfair labor practice charges, or ULPs, against both GM and Stellantis with the National Labor Relations Board.”
Stellantis stated that it has not yet been officially notified of the NLRB complaint, “but is shocked by Mr. Fain’s claims that we have not bargained in good faith.”
“This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining,” the company said in a statement.
“We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement. We will not allow Mr. Fain’s tactics to distract us from that important work to secure the future for our employees.”
GM’s response mirrored Stellantis’ in regard to the NLRB complaint: “We are surprised by and strongly refute the NLRB charge filed by the International UAW. We believe it has no merit and is an insult to the bargaining committees. We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress,” said EVP, Gerald Johnson.
In reference to Ford's recent proposal, Fain characterized it as “concessionary.” He explained that the proposal included a 9% wage increase spread over the four-year agreement period, one-time lump sum bonuses, and the unrestricted utilization of temporary workers who receive lower compensation and do not enjoy equivalent benefits.
Fain also noted that the company declined all of the union's job security and “quality of life” proposals, which encompassed additional paid holidays and a shorter workweek.
“Ford’s wage proposals not only failed to meet our needs, it insults our very worth,” Fain said.
Ford pushed back in response, noting that their offer featured a shorter six-year period for employees to reach top wages, as opposed to the previously longer eight-year period. The proposal also included $12,000 in “cost-of-living” bonuses distributed throughout the duration of the agreement, $5,500 ratification bonuses, a 25% increase in the base wages for temporary workers, and various other improvements compared to the prior contract, but not in line with the union’s demands.
Shares of F and GM are up 0.25% and 0.27% respectively in pre-market trading Friday, while shares of STLA are down 0.43%.