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(Reuters) -United Auto Workers (UAW) union President Shawn Fain angrily tossed contract proposals from Stellantis in a trash can on Tuesday, saying the Chrysler parent is seeking numerous concessions in ongoing contract talks.
“Stellantis proposals are a slap in the face,” Fain said during an online chat, disclosing the company is proposing cuts to health care coverage, fewer vacation days for new hires, employer cuts to 401(k) contributions and lifting a cap on temporary employees.
“Management has chosen to spit in our faces.”
During the chat he tossed a copy of the Stellantis proposal in a waste basket. “That’s where it belongs - in the trash - because that’s what it is,” Fain said.
The UAW also said the company opposes an end to two-tier wages, a practice of newer workers getting paid much less than veteran workers. It said Stellantis is threatening profit sharing and not offering to build a new vehicle at a currently shuttered Illinois assembly plant.
Fain cited an Aug. 1 statement Stellantis made to Reuters that the automaker is “not seeking a concessionary agreement.”
Stellantis did not immediately comment.
The UAW is seeking more than 40% pay raises over four years, significant additional time off and a restoration of defined benefit pensions previously eliminated for newer workers.
The current four-year contracts with Stellantis, General Motors and Ford Motor expire on Sept. 14.
Fain sent a warning Tuesday to the Detroit Three automakers: “The clock is ticking - time to get down to business.”
Two people briefed on the matter told Reuters automakers have estimated the UAW’s contract demands could raise the current mid-$60 per hour labor rate to more than $150 per hour.
The UAW is seeking a pay hike of more than 40% over the life of the contract, including an initial 20% hike upon ratification and four 5% annual wage hikes starting in September 2024, according to sources and a copy of the proposal.
The union wants to make all temporary workers at U.S. automakers permanent, add a substantial increase in paid time off and to 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.
Reporting by David ShepardsonEditing by Bernadette Baum and Marguerita Choy
