BY COMFORT OGBONNA
Members of the United Auto Workers (UAW) union have initiated a historic strike against the three largest automakers for the first time ever, as they failed to reach a new labor contract agreement by the September 14, 11:59 p.m. deadline. Despite weeks of negotiations, the union couldn’t reach a consensus with General Motors, Ford, and Stellantis (commonly referred to as the “big three”) before their existing contracts expired. Consequently, thousands of UAW members went on strike, staging walkouts at three factories in Missouri, Michigan, and Ohio.
The strikes are currently underway at specific locations: Ford’s Bronco assembly plant in Wayne, Michigan; GM’s mid-sized pickup truck assembly plant in Wentzville, Missouri; and Stellantis’s Jeep assembly plant in Toledo, Ohio. The duration of these strikes remains uncertain, but the UAW, the largest union in the country, has a strike fund totaling $825 million, which will provide $500 weekly compensation to the striking workers.
Video footage shared online depicts some strikes commencing immediately after midnight, with numerous workers taking to the streets, displaying signs reading “end tiers” and “record profits, record contracts,” and voicing their support for the strikes and better wages.
In a late Thursday press release announcing the strike, the UAW stated, “This fight is our generation’s defining moment, not just at the Big Three, but across the entire working class. We will stand up for ourselves. We will stand up for our families. We will stand up for our communities.”
UAW represents approximately 150,000 workers at General Motors, Ford, and Stellantis, but approximately 12,700 workers are participating in the strike, as stated by UAW President Shawn Fain during a Thursday night press conference. Among these, 3,600 are from GM, 3,300 from Ford, and 5,800 from Stellantis. Mr. Fain emphasized their commitment to securing an agreement that recognizes the significant contributions and sacrifices made by UAW members in these companies.
These strikes are anticipated to have substantial business and economic ramifications. According to the Anderson Economic Group (AEG), a work stoppage lasting 10 days could result in an economic loss exceeding $5 billion. Additionally, the strike could lead to higher car prices due to reduced inventories, according to AEG.
Meanwhile, the plants affected by the strikes are crucial to the production of highly profitable vehicles for the three automakers, including the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado pickup truck. A complete strike at these automakers could result in weekly losses estimated at $400 million to $500 million per week, assuming all production is halted, as estimated by Deutsche Bank.
Despite weeks of negotiations, union members and the major automotive companies have been unable to come to an agreement regarding salary, improved benefits, and pensions.
The union has presented a four-year contract proposal, which includes a 40% pay increase, a shortened 32-hour workweek, the removal of compensation tiers, the reinstatement of cost-of-living adjustments, and the return of traditional pensions, among other provisions.
However, the automakers, all of which have reported record or near-record profits, have thus far declined to meet this demand. Instead, they have offered a 20% increase in pay without including the key benefits requested by the union. They express concerns that such substantial pay raises could jeopardize their ability to stay in business.
Just hours before the deadline passed, Ford stated that they had negotiated “in good faith” to prevent a strike, which they claimed “could have significant repercussions for our business and the overall economy.”
The company maintained that their final offer to the union was “exceptionally generous,” encompassing substantial wage hikes, cost-of-living adjustments, additional paid time off, increased retirement contributions, and more.
Unfortunately, according to the company, the UAW’s counterproposal exhibited little deviation from their initial demands submitted on August 3. If accepted, this proposal would substantially increase Ford’s current labor costs related to the UAW, which are already notably higher than those of Tesla, Toyota, and other foreign-owned automakers in the United States that do not have union representation.
Ford reaffirmed its commitment to reaching an agreement that benefits its employees while safeguarding its capacity to invest in the future amid industry-wide transformations.
General Motors expressed disappointment in the actions of UAW leadership, despite offering an unprecedented economic package that included historic wage increases and manufacturing commitments. They emphasized their continued willingness to negotiate in good faith for the benefit of their team members, customers, suppliers, and communities across the U.S.
As for Stellantis, they have not yet commented on the strikes, and inquiries to a Stellantis spokesperson by The Epoch Times remain unanswered.
These “stand-up strikes,” which effectively involve staggered strikes across the various automakers’ factories, pay homage to the historical “sit-down” strikes organized by UAW members in the 1930s and aim to avoid a complete work stoppage.
UAW President Mr. Fain explained during a press conference that this strategy aims to keep the companies uncertain while giving national negotiators maximum leverage and flexibility in bargaining. However, he cautioned that the UAW is prepared to take more aggressive action if necessary, stating that “everything is on the table.”
He also clarified that workers who haven’t been called to strike will continue working under the expired contract.
Outside the Ford facility in Wayne, Mr. Fain criticized the three companies for allegedly delaying serious negotiations until the last week, expressing his disbelief at their claims that the strikes might bankrupt them. He argued that labor costs account for only 5% of a vehicle’s overall cost and that even doubling wages wouldn’t significantly impact vehicle prices or the companies’ profitability.
Mr. Fain hinted at the possibility of more strikes at additional facilities if the companies fail to meet the union’s demands.
The last UAW strike occurred in 2019 when the union went on strike against General Motors for six weeks, costing the automaker $3.6 billion.