GM vows to spice up jobs subsequent 12 months regardless of EV shift

Common Motors stated Friday it plans to spice up employment subsequent 12 months regardless of considerations raised by autoworkers that the shift to electrical autos will scale back labor wants.

GM, Ford Motor and Chrysler-parent Stellantis final month opened contract talks with the United Auto Employees (UAW) union forward of the Sept. 14 expiration of the present four-year labor offers.

GM manufacturing chief, Gerald Johnson, stated on Friday he didn’t agree it could want fewer employees for EV manufacturing.

“We really count on our employment numbers to develop in 2024,” Johnson stated in a video message.

Final 12 months, Ford stated EVs, that are less complicated and have fewer mechanical elements, would require 40% much less labor to construct than present inner combustion engine (ICE) autos. GM has vowed to finish the sale of latest ICE autos by 2035.

One other key subject within the talks entails pay and therapy of employees at GM’s three way partnership battery crops.

Individually, CFRA Analysis on Friday downgraded GM on considerations a few potential strike after the UAW sought giant pay and profit hikes. GM shares closed down 1% to $36.57.

Stellantis stated on Friday it intends “to pretty reward our represented staff for his or her contributions to the success of the Firm. Nonetheless, it will likely be crucial to search out frequent floor that doesn’t jeopardize our capability to proceed investing.”

The UAW is looking for a pay hike of greater than 40% over the lifetime of the four-year contract, together with an preliminary 20% hike upon ratification and 5% annual wage hikes beginning in September 2024, in accordance with sources and a replica of the proposal.

GM stated on Thursday the UAW proposals “would threaten our capability to do what’s proper for the long-term advantage of the group.”

The union is looking for substantial wage and profit adjustments, together with defined-benefit pensions for all employees and shorter work weeks.

It desires to make all momentary employees at U.S. automakers everlasting, a considerable enhance in paid time without work and restore retiree well being care advantages and price of dwelling changes. The UAW desires new limits on momentary employees and for them to obtain revenue sharing.

UAW President Shawn Fain on Tuesday expressed help for a 32-hour work week, down from the normal 40 hours.

Sources stated the union desires the businesses to comply with the equal of a paid day-off per week, at a time of rising trials globally of a four-day working week.

Reporting by David Shepardson; Modifying by Marguerita Choy