General Motors (NYSE:GM), on Friday, increased its proposal to the striking auto workers, matching Ford Motor Company's (NYSE:F) suggested 23% wage increase and additional benefits enhancements, hours before union leader was set to address the ongoing negotiations.
"We have made substantial movement in all key areas in an effort to reach a final agreement with the UAW and get our people back to work," GM said in a statement.
"The majority of our workforce will make $40.39 per hour, or roughly $84,000 a year by the end of this agreement’s term," they said.
GM’s latest offer demonstrates the Detroit automakers' coming together on comparable offers that could potentially boost hourly pay for UAW workers by approximately 30% throughout the duration of the agreement, factoring in cost-of-living adjustments.
While Ford's offer has been the most attractive among the three, the company has stated it has reached the threshold of what it can afford to pay while remaining competitive.
During the initial bargaining phase, the UAW opened negotiations demanding a 40% wage escalation. The demand included a 20% immediate increase, the elimination of varying pay structures among UAW workers, and the revival of defined benefit pension plans.
Additionally, the union emphasized the need for battery plant employees to fall under the purview of union agreements.
Shares of GM and F are up 0.95% and 0.79%, respectively in afternoon trading on Friday.