Auto workers across the United States are showing hesitance towards new contracts with car makers despite record pay increases. The stark reality is that industry-wide wage growth has been largely flat in recent years, while rising costs for health care have eaten away at take home pay. The result is that these employees are uncertain about their futures.
The new contracts proposed by the Automotive Manufacturers Association (AMA) are quite generous. Pay increases of up to 40 percent have been offered to full-time workers with the promise of a $15 minimum wage for entry-level employees by 2022. As a positive, the Associated Press reports that nearly every worker could earn more than $30 an hour by 2022.
Nevertheless, the unions representing these workers are not convinced. The United Auto Workers, for example, has advised their members not to sign the contract. In a statement, the union said that its members “overwhelmingly stand against” the proposed contracts, noting that workers will still come out worse than they did in pre-2008 contracts.
In particular, union members are worried about the increasing number of “supplemental” workers who are not on permanent contracts. Many of these family members or retirees have low pay and little chance of job security. The new contracts will only compound this issue.
It is critical that the industry makes good on its promise of higher wages and more secure work for its employees. Auto workers have long been the backbone of the automotive industry, and their success is essential for it to remain competitive in the global market.
At the same time, it is clear that these same workers are concerned about the new contracts and the potential effect they may have on their future. Given the realities of the current economy, many auto workers are ambivalent, at best, with respect to the proposed contracts. Ultimately, the industry needs to do more to convince these workers that they are indeed better off with the new contracts.
Auto workers across the United States are showing hesitance towards new contracts with car makers despite record pay increases. The stark reality is that industry-wide wage growth has been largely flat in recent years, while rising costs for health care have eaten away at take home pay. The result is that these employees are uncertain about their futures.
The new contracts proposed by the Automotive Manufacturers Association (AMA) are quite generous. Pay increases of up to 40 percent have been offered to full-time workers with the promise of a $15 minimum wage for entry-level employees by 2022. As a positive, the Associated Press reports that nearly every worker could earn more than $30 an hour by 2022.
Nevertheless, the unions representing these workers are not convinced. The United Auto Workers, for example, has advised their members not to sign the contract. In a statement, the union said that its members “overwhelmingly stand against” the proposed contracts, noting that workers will still come out worse than they did in pre-2008 contracts.
In particular, union members are worried about the increasing number of “supplemental” workers who are not on permanent contracts. Many of these family members or retirees have low pay and little chance of job security. The new contracts will only compound this issue.
It is critical that the industry makes good on its promise of higher wages and more secure work for its employees. Auto workers have long been the backbone of the automotive industry, and their success is essential for it to remain competitive in the global market.
At the same time, it is clear that these same workers are concerned about the new contracts and the potential effect they may have on their future. Given the realities of the current economy, many auto workers are ambivalent, at best, with respect to the proposed contracts. Ultimately, the industry needs to do more to convince these workers that they are indeed better off with the new contracts.
