UAW potential strike looms as contract nears end.
Negotiations between the United Auto Workers (UAW) and the Big Three automakers—Ford, General Motors, and Stellantis—are reaching a critical point as the union’s current contract is set to expire at 11:59 p.m. on Sept. 14.
With tensions running high, the UAW leadership has issued a warning that 140,000 workers could potentially go on strike, posing a threat to the U.S. economy and President Joe Biden’s clean energy goals.
During an appearance on CNBC on Sept. 13, UAW President Shawn Fain boldly stated that the three major U.S. automakers “could double our wages, not raise the price of vehicles, and still make billions in profits.” He emphasized that the union is still pushing for a 40 percent pay increase.
“We can get there, but the companies need to get serious and buckle down,” Mr. Fain emphasized during his interview with the business news network. “We have a lot of work to do in 48 hours.”
In addition to the substantial pay increase, the UAW is also demanding a four-year contract that includes a 32-hour workweek with 40 hours of pay and the restoration of traditional pensions.
Many officials and market observers are urging all parties involved to reach an agreement promptly. Senator Gary Peters (D-Mich.) expressed his hope that the UAW and the Big Three will continue negotiating to ensure that workers receive a contract that provides them with the wages, benefits, and job security they deserve.
“I’ve met with and have been in constant communication with UAW members, including UAW President Shawn Fain, and representatives from the Big Three auto manufacturers, and I’m hopeful that both parties will continue to negotiate in good faith towards a fair contract,” Senator Peters stated.
Dan Ives, an analyst at Wedbush Securities, believes that a strike is now highly likely as the two sides seem to be far apart in their positions.
“This is a potential nightmare situation for GM and Ford as both industry giants are in the early stages of a massive EV transformation,” Mr. Ives wrote on X (formerly Twitter) on Sept. 11.
Sources told the Associated Press that UAW union leaders are considering launching targeted strikes at a select number of factories operated by the three companies, which would disrupt production at various parts plants and assembly factories.
Big Three Offers
Ford announced on Sept. 7 that nearly 8,000 UAW-represented employees would receive an average pay increase of $4.33 per hour, amounting to approximately $9,000 per year. With overtime, the annual pay raise could exceed $10,000.
The automotive manufacturing giant referred to this deal as “23 Jump Street.”
“These pay raises are an example of Ford’s commitment to improving the lives of our hourly workforce,” said Bryce Currie, Ford’s vice president of manufacturing, in a statement. “The negotiating teams nicknamed this deal ‘23 Jump Street’ because in 2023, a significant number of UAW-Ford team members would see a jump in pay. And we are offering further improvements in the next contract.”
However, Mr. Fain acknowledged in a Facebook Live session that the UAW is demanding full-time employment for temporary workers after 90 days, comprehensive healthcare and retirement benefits, and profit sharing.
GM revised its proposal in the labor negotiations, which ”includes well-deserved wage improvements that far exceed the 2019 agreement and reward you for your hard work,” according to GM President Mark Reuss.
The offer also includes two additional 3 percent lump-sum payments, a one-time $6,000 inflation-recognition payment, $5,000 inflation-protection bonuses over the duration of the agreement, a $5,500 ratification bonus, and the recognition of Juneteenth as a paid holiday.
Mr. Fain described this offer as “insulting.”
“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” he stated. “GM either doesn’t care or isn’t listening when we say we need economic justice at GM by 11:59 p.m. on September 14th. The clock is ticking. Stop wasting our members’ time. Tick tock.”
Chrysler-maker Stellantis proposed a 14.5 percent general wage increase over four years, with new workers receiving a 27 percent boost to their starting wages. Additionally, Stellantis offered a one-time $6,000 inflation protection payment in the first year of the agreement and declared Juneteenth as a paid holiday for UAW-represented workers.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” said Mark Stewart, the chief operating officer of Stellantis’s North America unit. “It also demonstrates our commitment to recognizing and celebrating the importance of Juneteenth.”
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