UAW strike: ‘I think the strike can get resolved very quickly’

General Motors Co (NYSE: GM) is willing to significantly raise wages to end a strike but even its sweetened offer has so far failed to impress the United Auto Workers.

What is General Motors offering?

The legacy automaker agreed to a 20% increase in paycheck on top of more vacation days and a bunch of other benefits last night to settle with the union.  

Still, the UAW is on strike at its assembly in Wentzville, Missouri this morning. Reacting to it, Mary Barra – the Chief Executive of General Motors said today on CNBC’s “Squawk Box”:

I’m extremely frustrated and disappointed. We put a historic offer on the table that also has job security, we maintain world-class healthcare. So, we didn’t need to be here.

Thousands belonging to the union are also on strike today at one facility each of Ford Motor and Stellantis as well – of which the latter is reportedly on a bigger risk of facing a longer strike.  

What is it that the UAW is demanding?

What else General Motors has placed on the table include inflation protection, work-life balance, and enhanced perks for retirees. But the United Auto Workers is not budging primarily because a 20% increase in salaries falls massively short of a 40% increase it is demanding.  

Still, CEO Barra of General Motors sees not just the need but a path as well to quickly resolving the matter.

I think the strike can get resolved very quickly. Job security is very important to our GMT members. How you get job security is by making beautiful vehicles that people want to buy. We have those.

The Detroit automaker came in ahead of Street estimates in its latest reported quarter and raised its future guidance as well (read more). Its shares are down 15% versus its recent high at writing.