Averting Auto Strike Hinges on Pay Raises to Cover Inflation
- Union wants cost-of-living allowance built into pay raises
- GM, Ford and Stellantis could face work stoppage this week
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It’s been more than a decade since America’s carmakers have tied pay to inflation. Now workers want to change that after seeing prices surge over the past few years.
General Motors Co., Ford Motor Co. and Stellantis NV are under pressure to meet the demands of the United Auto Workers, who are seeking a new contract that replaces one expiring in just two days. Talks to avoid a strike have stalled around pay, especially a cost-of-living allowance known as COLA. The union won this protection 75 years ago, only to give it up in 2009 when two of Detroit’s three car companies went bankrupt during the financial crisis.