UAW Demands Improved Offer from Detroit Automakers, Unveils Walkout Threat

The GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021. REUTERS/Rebecca Cook// Acquire Licensing Rights

Detroit, Oct 20 (Reuters) – United Auto Workers President Shawn Fain warned on Friday that there might be more walkouts at U.S. truck and SUV factories unless the Detroit Three automakers improved wage and benefit offers. Fain stressed that the companies could afford more than what was currently on the table, despite the record packages.

“We’re striking the Big Three like never before,” Fain declared boldly. “These extremely profitable companies have more to give.”

After five weeks of strikes, Fain revealed that the UAW had received new contract offers from General Motors (GM.N) and Chrysler-parent Stellantis (STLAM.MI) within the past 24 hours. Ford (F.N) had made an offer over two weeks ago.

Fain confirmed that the Detroit Three had converged on a 23% wage hike and had made progress on other issues. However, he emphasized that there was still more to be won. While GM and Ford argued that additional cost-of-living increases took their total compensation offers over 30%, Fain acknowledged that some UAW members desired to vote on the current offers.

But Fain urged them not to succumb to the “fear, uncertainty, doubt, and division” being sowed by the companies. He warned of possible expanded strikes, but also assured UAW members that the talks were drawing to a close, stating that the most aggressive push occurred right before a deal was reached.

Shares in GM and Ford closed up about 1% on Friday, prior to Fain’s speech.

The UAW initially demanded a 40% wage hike. This led to walkouts at the three automakers starting on Sept. 15, with more than 34,000 union members currently participating in the UAW’s first simultaneous strikes against the Detroit Three.

Friday’s progress in talks followed the UAW’s unexpected strike last week at Ford’s Kentucky Truck Plant, which generates $25 billion in annual sales. Fain had described the Kentucky walkout as a warning to GM and Stellantis.

Ford, which had the highest offer among the three automakers, claimed to have reached its limit on what it could pay and still remain competitive.

Fain directed some of his strongest language at Ford and its chair, Bill Ford, who is also the great-grandson of founder Henry Ford. Ford has long fostered a cooperative relationship with the UAW to gain a competitive edge against GM and the former Chrysler, now Stellantis.

Fain proclaimed, “The days of the UAW and Ford being a team to fight other companies are over.” He also criticized Ford’s $600 million fourth-quarter dividend, arguing that it would result in about a dollar an hour raise for Ford hourly workers over the course of an entire contract.

The automakers have cautioned that union demands would significantly increase costs and hinder their electric vehicle plans. As non-unionized entities, EV leader Tesla and foreign brands like Toyota are exempt from the UAW’s strikes.

Ford expressed its eagerness to conclude negotiations in a statement following Fain’s speech, citing the lost wages and profit sharing endured by workers. Stellantis had no immediate comment.

Bill Ford previously warned that the strike was taking its toll on Ford and the U.S. economy. The Anderson Economic Group estimated that the total economic losses from the strike had reached $7.7 billion, with the Detroit Three suffering $3.45 billion in losses.

Ford Motor has not yet discussed how the EV battery plants it plans to build in joint ventures with Asian battery makers would fit into the UAW master agreement.

In his speech, Fain did not mention the battery plants. The UAW aims for automakers to allow the union to organize their workers and seeks a significant wage increase from the current levels, which are below assembly plant pay scales.

Reporting by Joseph White in Detroit and Abhijith Ganapavaram in Bengaluru; Additional reporting by Ben Klayman in Detroit and Pratyush Thakur in Bengaluru; Writing by Sayantani Ghosh; Editing by Sriraj Kalluvila, Peter Henderson, and David Gregorio

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Joe White is a global automotive correspondent for Reuters based in Detroit. He covers a wide range of auto and transport industry subjects and writes The Auto File, a thrice-weekly newsletter about the global auto industry. Joe joined Reuters in January 2015 as the transportation editor, leading coverage of planes, trains, and automobiles, before becoming the global automotive editor. He previously served as the global automotive editor of the Wall Street Journal, overseeing coverage of the auto industry and running the Detroit bureau. Joe is the co-author (with Paul Ingrassia) of Comeback: The Fall and Rise of the American Automobile Industry, and shared the Pulitzer Prize for beat reporting in 1993.

Is the Detroit Bureau Chief and North American Transportation Editor, responsible for a team of about 10 reporters covering everything from autos to aerospace to airlines to outer space. Contact: