How Much Does the Average UAW Worker Make in 2023? Why Do the United Auto Workers Want a Big Raise?
by S Samayanka
Updated Sep 14, 2023
How Much Does the Average UAW Worker Make in 2023?
As of 2023, United Auto Workers (UAW) workers' average hourly wage in the United States is approximately $27.99. UAW workers are employed in the motor vehicle and parts manufacturing industry, including union and nonunion workers. While this wage is a decent income, it's important to note that it has grown by 14.8% since 2018. However, it's still lower than the average hourly earnings across all industries in the country, which is now $33.82, reflecting a 19% growth during the same period.
It's also worth mentioning that different automakers have varying wage rates for their employees. For instance, the maximum average hourly wages in 2023 are $31.77 at Stellantis, $32 at Ford, and $32.32 at GM. This information shows that the UAW workers' wages have seen some growth over the years, but there are differences in pay among different car companies.
United Auto Workers
The United Auto Workers (UAW) is a labor union in the United States and Canada, representing workers in various industries, including automobiles, healthcare, casinos, and education. It was formed in the 1930s as part of the Congress of Industrial Organizations (CIO) and gained prominence in the mid-20th century under leaders like Walter Reuther.
Historically, the UAW is known for securing high wages and pensions for auto workers, improving their working conditions, and playing a role in the Democratic Party. However, it faced challenges in the late 20th century, such as difficulties unionizing foreign automakers' plants in the South, automation, and globalization.
As of February 2022, the UAW had over 391,000 active members and 580,000 retired members across more than 600 local unions. They hold contracts with numerous employers and possess significant assets. The union is headquartered in Detroit, Michigan, and continues to advocate for workers' rights and fair labor conditions in various industries.
Abbreviation
UAW(United Auto Workers)
Formation
1935
Type
Trade union
Headquarters
Detroit, Michigan, US
Location
United States, Ontario, Canada
President
Shawn Fain
Why Do the United Auto Workers Want a Big Raise?
The United Auto Workers (UAW) is seeking a substantial raise for several reasons:
Profit Growth:
The UAW points to the significant increase in annual gross profits at major U.S. automakers, such as Ford and General Motors, since the last contract negotiations in 2019. They argue that as these companies have become more profitable, workers should receive a larger share of the benefits.
Inflation:
Inflation has been high since the previous contract agreements in 2019. Hourly wages in the motor vehicle and parts manufacturing industry have increased, but the UAW believes these gains have been eroded by rising living costs. They seek compensation to help workers maintain their purchasing power amid inflation.
Executive Compensation Disparity:
Workers are unhappy with the substantial salary increases that the CEOs of these automakers have received in recent years. The CEOs' pay has grown by 30% to 40%, while the median employee's pay has not seen similar increases. This wage gap has fueled demands for more equitable pay increases.
Tiered Pay Structures:
The UAW aims to eliminate tiered pay structures that exist among Big Three workers. Currently, part-time employees, "in-progression" full-time employees, and full-time employees have different wage levels. The UAW seeks to establish a fairer wage structure for all employees, reducing wage disparities.
Economic Uncertainty:
The UAW is likely considering the potential economic uncertainty in the automotive industry due to the shift toward electric vehicles (EVs) and increased competition from nonunionized automakers like Tesla. They may see this negotiation as an opportunity to secure favorable terms before further industry changes occur.
Overall, the UAW's demand for a significant raise is a response to a combination of factors, including increased corporate profits, concerns about inflation, a desire for more equitable compensation compared to executives, and the need to ensure fair wages for all workers in the industry.
UAW Strike
The UAW strike is when workers from the United Auto Workers union stop working because they are not happy with their pay, benefits, or working conditions. They do this to get better wages, benefits, and treatment from their employers, which are usually big car companies like Ford, General Motors, or Stellantis. During a strike, the workers picket outside the company's facilities and do not go to work. Strikes can last for a short or long time, and they can affect the company's production and profits. The workers hope that by striking, they can make their employers agree to their demands for better work conditions and pay.
How Much Does the Average UAW Worker Make in 2023? - FAQs
The average hourly wage for UAW workers in 2023 is approximately $27.99.
The United Auto Workers is a labor union representing workers in various industries, including automobiles, healthcare, casinos, and education.
UAW workers want a big raise due to increased company profits, high inflation, executive pay disparities, tiered wage structures, and economic uncertainty.
As of February 2022, the UAW had over 391,000 active members.
During a UAW strike, workers stop working, picket outside company facilities, and do not go to work to demand better wages, benefits, and working conditions from their employers.