UAW president plans to extend strike at Ford, GM.
By David Shepardson and Joseph White
September 29, 2023 – 7:53 AM PDT
DETROIT, Sept 29 (Reuters) – The United Auto Workers are taking their fight to the next level. UAW president Shawn Fain announced on Friday that the strike will expand to additional plants at General Motors (GM.N) and Ford (F.N), making it the first-ever simultaneous strike against the Detroit Three automakers to enter its third week.
The strike will now include Ford’s Chicago assembly plant and GM’s Lansing, Michigan, assembly plant, adding approximately 7,000 workers to the picket lines. This brings the total number of workers on strike to 25,000. However, the strike will not include any additional members at Stellantis (STLAM.MI).
In a video address on Friday morning, Fain expressed frustration with the lack of progress in negotiations, stating, “Despite our willingness to bargain, Ford and GM have refused to make meaningful progress.” He also mentioned that there was a sudden increase in interest from the companies just before his announcement.
Originally, the UAW had planned to announce a new strike at Stellantis, but significant changes were made to the contract proposal by the company just moments before Fain’s scheduled announcement.
The strike at the Ford and GM plants will begin at noon on Friday.
Meanwhile, negotiations with Stellantis are still ongoing. Talks among the UAW and negotiators for the Detroit Three have been described as “very active.” Fain remains hopeful that a deal can be reached, but he made it clear that the UAW is tired of corporate greed and excess.
The UAW is expected to continue the work stoppages until a new contract is ratified. The strike, now entering its third week, is driven by the autoworkers’ demands for higher wages, better benefits, and the elimination of the tiered standard that pays newer workers significantly less.
However, automakers argue that the union’s demands would negatively impact their profits as they compete with nonunion manufacturers like Tesla.
The UAW has taken a strategic approach with these walkouts, using them to increase pressure on the automakers. Instead of a mass walkout, the UAW has employed strikes like a ratchet, keeping company executives guessing about the next move.
Despite the ongoing strikes, the financial impact has been relatively limited compared to the halting of assembly lines that produce popular truck models. Analysts estimate that GM, Ford, and Stellantis earn up to $15,000 per vehicle on their respective large pickup truck models.
As the strike continues, the union and the companies remain far apart on key economic issues. Fain is demanding 40% pay hikes over a four-year contract, a position supported by President Joe Biden. The companies have countered with offers of about 20%. Additionally, the UAW is pushing for the elimination of the two-tier wage system.
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Why did the UAW choose not to include any additional members at Stellantis in the strike, and what is the current status of negotiations with the company
Of striking at all plants simultaneously, they have strategically targeted specific plants to maximize the impact. By expanding the strike to additional plants, the UAW is sending a clear message to the Detroit Three automakers that they will not back down until their demands are met.
The decision to include Ford’s Chicago assembly plant and GM’s Lansing, Michigan, assembly plant has added approximately 7,000 workers to the picket lines, bringing the total number of workers on strike to 25,000. The UAW’s intent is to disrupt production and put pressure on the companies to come to a favorable agreement.
In his video address, UAW President Shawn Fain expressed frustration with the lack of progress in negotiations. He stated, ”Despite our willingness to bargain, Ford and GM have refused to make meaningful progress.” Fain also mentioned that there was a sudden increase in interest from the companies just before his announcement, implying that the strike had forced them to take notice.
The decision to not include any additional members at Stellantis was due to significant changes made to the contract proposal by the company just moments before Fain’s scheduled announcement. Negotiations with Stellantis are still ongoing, and talks between the UAW and negotiators for the Detroit Three have been described as “very active.” While Fain remains hopeful that a deal can be reached, he made it clear that the UAW is tired of corporate greed and excess.
The UAW’s demands for higher wages, better benefits, and the elimination of the tiered standard that pays newer workers significantly less are driven by the autoworkers’ desire for fair compensation and equal treatment. However, automakers argue that these demands would negatively impact their profits as they compete with nonunion manufacturers like Tesla.
The UAW’s strategic approach to these walkouts highlights their determination and resolve. They are willing to continue the work stoppages until a new contract is ratified, showing their commitment to securing a fair deal for their members. By targeting specific plants and expanding the strike, the UAW aims to increase the pressure on the automakers and ensure that their voices are heard.
As the strike enters its third week, the automotive industry and the public will be closely watching the negotiation process. The outcome of these negotiations will not only impact the autoworkers and the Detroit Three automakers but also set a precedent for labor relations within the industry.
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