Vast Majority of Workers Vote to Approve Work Stoppage

Amid ongoing contract negotiations, United Auto Workers (UAW) members have granted union leaders the authority to call strikes against General Motors, Ford Motor, and Stellantis if necessary. The union revealed that an average of 97% of its members at the automakers have approved the action, a level of support similar to the previous negotiations four years ago. The strike authorization vote is seen as a procedural step and does not guarantee that a strike will occur.

UAW President Shawn Fain clarified that the union’s goal is not to strike, but rather to secure fair and just contracts for its members. Despite this, Fain has emphasized the union’s readiness to use striking as a strategic tool during negotiations. The union’s demands in this round of negotiations include a 46% wage increase, the reinstatement of traditional pensions, cost-of-living increases, a reduction in the workweek to 32 hours, and improved retiree benefits.

If a strike were to take place, it could take different forms, such as a nationwide strike or targeted work stoppages at specific plants. However, a strike against all three automakers would be the most impactful but also the riskiest and costliest for the union. The UAW currently has a strike fund of over $825 million, which it uses to provide $500 per week in strike pay to eligible members.

During the last round of negotiations in 2019, a 40-day strike against GM resulted in a production loss of 300,000 vehicles and cost the automaker $3.6 billion in earnings. Both national and targeted strikes could have detrimental effects on the business operations of the automakers.

UAW President Shawn Fain (right) speaks with union member Jerome Buckley outside of General Motors’ Factory Zero plant on July 12, 2023, in Detroit.

Michael Wayland / CNBC