agent Entrepreneur logo
MenuMENU
SearchSEARCH

Detroit Three, UAW Will Square Off Over Wages, U.S. Jobs

The Big Three U.S. automakers and the United Auto Workers union will kick off bargaining Monday for new contracts that would set how much more robust, post-recession profits the industry shares with workers, and determine union costs to win more U.S. jobs, reports Reuters. UAW leaders said they will insist on raises for 139,000 blue-collar ... Read More »

July 12, 2015
2 min to read


The Big Three U.S. automakers and the United Auto Workers union will kick off bargaining Monday for new contracts that would set how much more robust, post-recession profits the industry shares with workers, and determine union costs to win more U.S. jobs, reports Reuters.

UAW leaders said they will insist on raises for 139,000 blue-collar workers at U.S. plants run by Ford Motor Co, General Motors Co. and Fiat Chrysler Automobiles after rounds of bargaining in 2007 and 2011 that led to substantial concessions. Union leaders and chief executives of the Detroit Three are scheduled to stage public handshakes next week, starting Monday. Their current contracts expire Sept. 14.

Ad Loading...

Union President Dennis Williams has said he wants to narrow the gap between veteran workers, who make about $28 an hour, and employees hired since 2011 with a “second tier” hourly wage of $16 to $19.

Labor accounts for a declining share of a vehicle’s cost, said Sean McAlinden, chief economist at the Center for Automotive Research, noting that the three automakers’ costs for UAW members fell to 5.7 percent last year from 11.5 percent in 2007.

But executives at the Detroit Three said their ability to add more UAW jobs depends on offsetting increases in wages or benefits with gains in productivity. Health care costs promise to be a central issue, as the automakers face paying a so-called “Cadillac tax” of 40 percent on rich UAW medical plans starting in 2018.

John Fleming, head of Ford manufacturing, said the company expects to boost productivity by 6 to 7 percent in all its factories. “Every dollar that we don’t take out is a dollar that your competitor can spend on making their vehicles more competitive,” he said.

The automakers’ leverage is strengthened by the union’s failure to organize auto plants in the southern United States operated by Asian and European manufacturers, and by the growing capability of Mexican auto workers and suppliers to build cars for the U.S. market.

Ad Loading...

Ford jolted the union on Thursday by announcing plans to move production of its small Focus and C-max hybrid cars out of a factory in suburban Detroit by 2018. The company said the Wayne, Michigan, factory’s future would be a subject of bargaining in this round of talks.


More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →