General Motors Co (NYSE:GM) has reportedly raised concerns about approving the United Auto Workers’ (UAW) contract demands, including a pay rise.
The auto giant said conceding to the union’s demands would prevent it from making sound business decisions, Reuters reported.
United Auto Workers’ union demands at least a 40% wage increase over the tenure of the four-year contract. The union also seeks an initial 20% increase in pay upon ratification.
The UAW has reportedly presented its demands to GM, Stellantis N.V., and Ford Motor Company (NYSE:F) ahead of the September 14, 2023, expiration of the present four-year contracts.
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The report further noted UAW stating earlier this week that the CEOs of the Detroit Three had won 40% pay hikes on average over the last four years.
UAW President Shawn Fain had reportedly shown support for a 32-hour work week instead of the usual 40 hours.
“We think it’s important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition,” the report quoted GM.
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Price Action: GM shares are trading lower by 0.26% at $36.82 in premarket on the last check Friday.
