The United Auto Workers (UAW) union today rejected a contract proposal by global automaker Stellantis, following a similar rejection of an offer by General Motors (GM) the day prior.
The proposed wage increase of 14.5pc over the four years of the contract by Stellantis, which has major operations in the US, is the highest offered ncrease yet among the three automakers trying to craft a new contract with the UAW.
Both Ford and GM have already proposed and had rejected new contracts with proposed wage increases of 9pc and 10pc, respectively. One-time payments would also further boost wage increases over the course of the new contracts.
The current contract expires at 11:59pm ET on 14 September, and UAW president Shawn Fain has threatened to launch strikes at any automaker that does not have a signed agreement by then.
A strike at any of the automakers would lead to an immediate impact on metals consumption hitting aluminum, copper, and steel.
"This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the US," said Mark Stewart, Stellantis' North America chief operating officer. "It also protects the company's future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles."
In a response, the UAW called Stellantis "by far the richest of the Big Three automakers" adding that "they just don't want Stellantis workers to get our fair share."
The UAW has been pushing for wage increases of at least 40pc over the course of the four-year contract among a slew of other demands like removing the tiered system of hiring, adding a cost of living adjustment increase, and pension reforms.
