UAW Extends GM Walkout as Stellantis Strike Resolves – Update on Expanding Protests

<h1> UAW Expands Strike Against GM, Includes Spring Hill Engine Plant </h1>

<p>On October 28, the United Auto Workers (UAW) announced an expansion of its strike against General Motors (GM), now including the Spring Hill, Tennessee, engine plant. This decision has the potential to disrupt GM’s large pickup production and increase its financial burden. GM is now the only Detroit automaker without a contract deal, as Chrysler-owner Stellantis and Ford reached agreements with the UAW earlier this week.</p>

<p>The recent deals secured by Stellantis and Ford resulted in a record 25% wage increase over a 4-1/2-year period for workers, allowing the companies to resume their profitable truck assembly lines. However, GM’s negotiations with the UAW have encountered challenges regarding retirement benefits and concerns related to temporary workers. The number of GM retirees surpasses that of Ford and Stellantis, and the increase in pension benefits for pre-2007 workers has proven costly for GM.</p>

<p>”We are disappointed by GM’s unnecessary and irresponsible refusal to come to a fair agreement,” stated UAW President Shawn Fain. GM, on the other hand, expressed its desire to reach a resolution promptly and acknowledged the potential impact of the Spring Hill walkout on two of its large pickup plants. The Spring Hill plant, employing 4,000 workers, supplies engines to nine assembly plants responsible for manufacturing some of GM’s most profitable vehicles.</p>

<p>The negotiation process was put on hold, with no talks scheduled for Saturday. The timing of the next session between GM and UAW remains uncertain.</p>

<h2>Stellantis Deal with UAW</h2>

<p>Following the pattern set by Ford, Stellantis successfully reached an agreement with the UAW. These agreements will result in pay increases of over 33% after considering compounding and cost-of-living adjustments. The contracts will commence with an initial 11% raise. A video released on social media by UAW lawyer Benjamin Dictor highlights the discrepancy between GM and its competitors, stating, “Imagine, everyone is making trucks but you. If everyone else could get it done, what does that say about you?”</p>

<p>The Stellantis deal includes the reopening of the assembly plant in Belvidere, Illinois, which will produce midsize trucks that could potentially compete with Ford’s Ranger and GM’s Chevrolet Colorado and GMC Canyon models. The Belvidere plant had been closed previously but became a focal point in the UAW’s bargaining campaign. Additionally, Stellantis agreed to establish a battery plant adjacent to the Belvidere facility.</p>

<p>Illinois Governor Jay Pritzker praised the agreement, considering it a significant victory for the state. He pledged to offer incentives to help offset Stellantis’ costs. Stellantis will also retain two facilities that were at risk of closure: an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio. The automaker has committed $19 billion for new investments in U.S. operations and the creation of 5,000 jobs, reversing its previous plan of cutting 5,000 jobs.</p>

<p>Notably, the UAW has secured the right to strike in response to product investment decisions.</p>

<h2>Increased Costs and Impact on Blue-Collar Workers</h2>

<p>UAW President Shawn Fain criticized the Detroit automakers for prioritizing the enrichment of executives and investors over the well-being of workers. Fain believes the success of the UAW will benefit blue-collar workers nationwide. The companies argue that the UAW’s demands will substantially raise costs and put them at a disadvantage compared to nonunionized companies like Tesla and Toyota.</p>

<p>Ford estimates that the new contract will increase labor costs by $850 to $900 per vehicle. Analysts suggest that Tesla already enjoys a labor cost advantage of approximately $20 per hour.</p>

<p>The UAW negotiations aligned with high-profile labor campaigns by striking Hollywood writers and actors, as well as workers at UPS. With widespread labor shortages, the labor movement has experienced a resurgence after a period of decline.</p>

<p>The contract talks have captured the attention of President Joe Biden and his Republican rivals, as Michigan and other key auto-producing states play a pivotal role in their 2024 campaign strategies.</p>

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<h3>About the Author: Joe White</h3>

<p>Joe White is a global automotive correspondent for Reuters, based in Detroit. Joe covers a wide range of auto and transport industry subjects, and he writes The Auto File, a three-times weekly newsletter focusing on the global auto industry. Previously, Joe served as the global automotive editor of the Wall Street Journal and oversaw coverage of the auto industry while running the Detroit bureau. Joe is also the co-author of “Comeback: The Fall and Rise of the American Automobile Industry” with Paul Ingrassia.</p>

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