In 2017, BMW scored a net profit of over $9.7 billion. In 2022, the automaker that Consumer Reports says makes the best cars pulled off a miracle and almost doubled its net income. The company made its shareholders $18.9 billion! Now, US unionized workers want a bigger piece of that huge pie, and they are getting serious about it.
Last year, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, aka the UAW, scored a major win against America's most well-known automakers.
GM, Ford, and Stellantis tried to fight them off, but the workers were smart and acted methodically. They gradually expanded the strikes until the Detroit Three brought forward counteroffers that were good enough to be put to a vote. In the end, their plan worked, and virtually anyone working for GM, Ford, or Stellantis scored a raise or a major improvement in their working conditions.
Last month, the UAW announced that it was BMW's turn to come to the negotiation table. They are asking for an end to wage tiers, big wage increases, a cost-of-living adjustment (COLA) formula that protects workers from inflation, more profit sharing, better restrooms, and reduced healthcare costs.
The UAW argues that BMW North America has raked in around $5 billion in revenue since 2021, while many workers haven't received a raise in over a decade. Union members said that they're making $60,000 cars, and the German manufacturer is treating pennies like manhole covers.
UAW also says that BMW spent over $3 billion on stock buyback schemes, with an extra $1 billion programmed to be spent on the same thing to keep the shareholders happy. Moreover, they point out that the company's CEO received almost $10 million for his 2023 performance.
Photo: UAW on Twitter (X)
For now, BMW has offered an hourly pay increase of $1.29 and a top rate of $22.95 from the $21.65 that's now in effect. The company didn't send anyone to attend the bargaining in person. The company told the UAW that they can negotiate via email.
When writing, BMW has a week left to figure out a good response that can make the UAW consider not striking. The organization established June 30 as the strike deadline, which, coincidentally, is the date when the existing collective agreement expires.
The UAW's latest social media post is a warning for the automaker. If last year was any lesson, the UAW wouldn't agree to small increases in pay without getting more of what they asked for. The workers are ready to strike because they have been practicing already. Moreover, they've already voted to authorize workers to leave their posts.
They want "a record contract" that's similar to what Stellantis, GM, and Ford workers obtained, which certainly feels like a fair request. BMW just updated most of its lineup, and the US market is vital to the brand. There's little to no chance that it'll continue to offer workers breadcrumbs instead of a whole loaf. They might continue to play hardball for a little while, but the workers are poised to score a win. If that's not going to happen, the Bavarians might have a lot more planning to do.
BMW has made $5 billion since 2021. It's time for a record contract.
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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