Vanessa Yurkevich is
live in
Detroit with the CEO of General Motors,
Mary Barra.
Good morning, Vanessa.
Good morning, Poppy.
Here at GM headquarters with Mary Barra,
who is speaking to us
about the latest developments
on the strike today.
Thank you so much for being here.
GM and the union could not come
to an agreement before the midnight
before the midnight deadline.
Why is that?
Well,
I think that's a question
you probably
need to ask the UAW,
because we have a very compelling offer
on the table.
I'm very frustrated
because I think we had an offer
that resonates with our people.
It's a historic offer.
Gross wage increases of 20%,
that compound to 21%,
maintaining world class health care.
There's several aspects as well.
I think one thing
that's most important is job security.
And, you know,
we're an incredibly exciting time
in this industry
right now
as we make the transformation
from internal combustion engine vehicles
to electric vehicles.
And General Motors is well placed.
We have a pipeline coming.
And so when we look at that
and we look at how this could delay
that it's at a critical juncture.
So we have a deal that I think is
very, very important.
That proposal sits at the table.
Our team is ready
to be at the table again.
They're waiting and we need to get back.
We need the UAW leadership
to get back to the table,
get these issues resolved
so we can get people back to work.
The UAW also struck against GM in 2019
so two strikes and four years.
What do you think you're getting wrong.
Well I think we on
each of those are very different
and I think you know
19 had a whole set of issues
very different.
It took a long time
to go through all of that.
But if you look at where we are right now
we understand
the world has changed
and that's why
we put a historic offer
on the table with the increases
I think our manufacturing team
is the best on the field.
The way they manage
through the COVID situation
and continue to build cars, trucks
and crossover
the way that we managed
and they move with us as
we went through
the semiconductor shortage
and still the supply challenges
that we see today,
they're very resilient
and I want to recognize them
because our manufacturing team,
along with the engineering team
for the last two years,
has been number one in JD Power quality.
So we have a very talented team.
We've put a historic offer on the table.
And so that's why I'm
so disappointed and frustrated.
The union is demanding,
asking for a 40% wage
increase over four years.
They're asking for that in part
because they say CEOs like yourself
leading the Big Three are making
those kind of pay increases
over the course of the last four years.
You've seen a 34%
pay increase in your salary.
You make almost $30 million.
Why should your workers
not get the same type of pay increases
that you're getting leading the company?
Well, if you look at compensation,
my compensation 92% of it
is based on performance of the company.
I think one of the strong aspects
of the way
our compensation
for our represented
employees is designed is not only
are we putting a 20% increase
on the table, we have profit sharing.
So when the company goes
well, everyone does well.
And for the last several years
that's resulted in record profit
sharing for our represented employees.
And I think you have to look at the whole
compensation package,
not only 20% increase in gross wage,
but also on the profit
sharing aspect of it, world class
health care.
And there's several other features.
So we think we have
a very competitive offer on the table,
and that's why
we want to get back there
and get this done.
But if you're getting a 34%
pay increase over four years
and you're offering
20% to employees right now,
do you think that's fair?
Well, I think
when you look at the overall
the overall structure
and the fact
that 92% is based on performance
and you look at
what we've been doing
is sharing in the profitability
when the company does well,
I think
we've got a very compelling offer
on the table and that's the focus
I have right now.
So let's talk about profits
because in 2009
GM filed for bankruptcy,
was bailed out by the US government
workers, made concessions
to keep their jobs
to keep the company alive.
Why shouldn't workers be entitled
to what they gave up
15 years ago,
especially since GM
is making record profits right now?
Well, first of all,
this is a very cyclical business
and we've had a very strong run.
I think part of
that is because
of the demands of the economy
and what we've been through
with unprecedented with COVID
and semiconductor challenges.
But we have to remember
we're a cyclical business.
We also have to remember
this is a pivotal point in the auto
industry for everyone
as we make this 100 year
transformation from internal combustion
engine vehicles to electric vehicles.
We need to make sure
we can invest in both
to maintain the jobs that we have.
And I think
if you look at
many aspects of the agreement,
it is
it is getting at the specific issues of
of some of the
some of the different challenges
in different ways,
because no compensation system,
I think, anywhere is the same as it was,
you know, 15, 20 years ago.
So we have to look at where we are.
We have to look at the future
and at General Motors.
We want to recognize the hard work
of our manufacturing employees.
We have a historic deal
on the table over
best the best economics in over 115 years
And that's what we have on the table.
We want to,
you know,
finish the negotiations, problem solve
and get people back to work.
I spoke to your counterpart,
Jim Farley, CEO of Ford and he said that
if Ford meets
all of the demands
that the union has, that
Ford would go bankrupt.
Is that the same case for General Motors?
When you look at the original demands,
they totaled over $100 billion.
That's
more by quite a factor
than we've made over
the life of this agreement.
And frankly, more than almost double
the market cap of the company right now.
So that's why
we have to have a realistic offer.
We want to make sure
we reward the hardworking men
and women of General Motors
and the work they do every day.
And we think that's
what we have on the table.
But is that bankruptcy level demands?
Well, if you you know, if you're
asking for more than the company made,
I think that's not a good position.
So Sinn Fein has obviously
made some ambitious demands
on on the companies.
There's no question about that.
Do you believe that Sean
Finn is setting his members
up for disappointment in the end?
You know, I think that's a question
that you should probably talk to Sinn
Fein.
I think our there's many of our employees
who really understand
the reality of the situation.
I think they'll see this as a record
a record agreement.
When we look at the gross wage increases,
when we look at where
we are in health care,
when we look at the additional benefits
that we've added
as a part of this very,
very strong offer that sits on the table.
I think they're going
to understand that
because they also when I visit
a lot of plants,
I'm in one to two plants every month,
and I've been doing that for years.
So when I talk to employees
and I listen to them
they want to know that their facility
is getting a new product
and to get a new product.
We have to have the money
to design, engineer and install all the
we need equipment to do that.
And so it's important.
And I think they understand
you need to do both.
They want to make sure
General Motors
is here for the next hundred and 50 years
just as much as I do.
I think everybody needs
to understand that get serious,
get to the table.
We have a strong agreement.
Like I said, it's a record agreement.
I think we're in a good position
to get this done.
Just quickly, last question.
You spoke to President Biden yesterday.
What was that conversation?
So I've been speaking
to many members of Congress
and the administration,
and I'm going to continue
to give them an update.
I'm going to continue
to make sure they know
we have a strong offer.
We're negotiating in good faith,
and we have since July 18th
when the negotiations started.
We've been given over a thousand demands
and we have to talk about each
and every one of those.
So we're doing the work.
We want to get people back to work.
We again,
I think we have the best manufacturing
team on the field right now.
And we're at an exciting juncture
we need to get people back to work
so we can maintain our GM momentum
and win
and keep
our position of selling more vehicles
in this country than anyone else.
And we think we can grow with the EV
portfolio
we have on top of our internal combustion
engine.
So, you know, we're going to keep
keeping everybody up to speed.
But the most important
is to get the UAW leadership
back to the table so we
can get this resolved.