GM President Counters UAW's 'Flow Of Misinformation,' Refutes 'Poverty Wages' Allegations

Negotiations between the Detroit Big Three automakers and the United Auto Workers union remain at an impasse, with a missed contract deadline leading to strikes against the auto companies.

Here’s the latest from General Motors Company (NYSE: GM).

What Happened: The UAW is asking for an increase in pay, a shorter work week and other benefits as part of new contract negotiations with General Motors, Ford Motor Company (NYSE: F) and Stellantis NV (NYSE: STLA).

Wednesday marks six days of targeted strikes by the UAW against the three automotive companies.

General Motors is out with new comments on the strikes and contract negotiations.

In a piece featured in the Detroit Free Press, GM President Mark Reuss wrote that the UAW's demands are untenable for the company's future prospects.

Reuss also criticized the leadership of the UAW for providing a “flow of misinformation” when it comes to the strikes and contract negotiations.

“It can be hugely counterproductive to reaching an agreement that gets the GM team back to work quickly, which should be everyone’s goal,” Reuss wrote.

He added that an offer made by General Motors on Sept. 14 was a record and addressed items like wage growth, job security and “long-term stability.”

In his op-ed, Reuss aimed to debunk several misconceptions circulating as the strikes intensify, with UAW leadership portraying the automotive companies as the enemies.

“UAW leadership claims GM pays its team members ‘poverty’ wages. This is simply not true. In our current proposal, we are offering a 20% wage increase.”

Reuss said the contract negotiations represented a base wage of around $82,000 per year for employees, which is higher than the average median household income of $51,821 in areas where GM has assembly plants.

With compensation including overtime and benefits, the annual amount would be over $150,000 per year, Reuss wrote.

Related Link: 'People's Lives Are Getting Worse And Worse': UAW Strikers, Supporters Decry Corporate Practices 

What’s Next: Reuss highlighted the potential implications of the contract negotiations on General Motors' future.

“We want to ensure our company succeeds, and more importantly wins for the next 100 years – for the benefit of everyone,” Reuss said. “We’re at a pivotal point in our journey as we transition to an all-EV future.”

Reuss said if General Motors doesn’t continue to invest in certain areas, it will lose ground to the competition.

“Our competitors across the country and around the world, most of whom are non-union, will waste no time seizing the opportunity we would be handing them.”

He added that “nobody wins in a strike.”

General Motors said its Kansas assembly plant is likely to be halted this week due to a strike at its nearby Missouri plant. The halt would affect 2,000 workers.

GM Price Action: General Motors shares fell 2.24% to $33.20 on Wednesday, versus a 52-week trading range of $31.11 to $43.63.

Read Next: UAW Strike Could Put Auto Suppliers, Michigan Economy In Crisis, Analysts Say 

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