HOUSTON (ICIS)–The latest offer from US
automaker General Motors (GM) to striking
unionised auto workers includes a 23% general
wage increase, reinstatement of cost-of-living
allowances (COLAs) for seniority team members,
a ratification bonus and up to five weeks of
vacation.
The details of the offer were posted to GM’s
website on Friday, the 36th day of the work
stoppage aimed at the Big Three US automakers –
GM, Ford and Stellantis.
About 36% of the Big Three’s North American
auto production is currently offline and
associated plants are dealing with layoffs
because of disruptions to supply chains related
to the strike.
Assembly plants that are currently offline and
the date when the United Auto Workers (UAW)
union members walked off the job are shown in
the following table.
| GM | Wentzville, Missouri | assembly plant | 15-Sep |
| Ford | Wayne, Michigan | assembly plant | 15-Sep |
| Stellantis | Toledo, Ohio | assembly plant | 15-Sep |
| GM | Lansing, Michigan | assembly plant | 29-Sep |
| Ford | Chicago, Illinois | assembly plant | 29-Sep |
| Ford | Louisville, Kentucky | assembly plant | 11-Oct |
Work stoppages have also taken place at 38
Stellantis and GM parts distribution centres.
The UAW did not have an immediate comment after
GM’s offer.
Observers said the offer from GM is
significant, especially the offer of zero
premium, zero deductible healthcare for
seniority team members.
GM’s offer also included a faster path to
maximum wages and a commitment that all
seniority employees will reach the maximum wage
during the life of the contract.
The offer also includes wage increases of 26%
to $21/hour for temporary workers, and profit
sharing for temporary workers who have worked
at least 1,000 hours.
Also, all active full-time temporary workers
with one year of employment will be converted
to seniority at ratification and going forward.
IMPACT ON CHEMICALS
The petrochemical industry is closely
monitoring the situation because an extended
strike would massively disrupt demand
for polymers as a typical vehicle contains
nearly $3,950 of chemistry including chemical
products and chemical processing.
The UAW strike has likely slashed monthly
polymers demand from the Big Three by 26,000
tonnes for polypropylene (PP), 11,000 tonnes
each for polyurethanes (PU) and nylon, and
5,000 tonnes each for
acrylonitrile-butadiene-styrene (ABS) and
polyvinyl chloride (PVC), based on H1 2023
volumes, according to an analysis of industry
data obtained by ICIS.
For the US economy as a whole, a prolonged
strike and its ripple effects would be a major
blow, according to Kevin Swift, ICIS senior
economist for global chemicals.
Virtually every component of a light vehicle,
from the front bumper to the rear taillights,
features some chemistry.
The latest data indicate that polymer use is
about 437lb (198kg) per vehicle, he said.
Additional reporting by Al Greenwood,
Joseph Chang and Stefan Baumgarten
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Thumbnail image shows an auto worker on an
assembly line