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The United Auto Workers (UAW) is expanding its strike against Ford and General Motors (GM), but has spared Stellantis from further action due to progress made at the bargaining table.
In a livestream on Friday, UAW president Shawn Fain announced that the union will strike at Ford’s assembly plant in Chicago and GM’s assembly plant in Lansing, Michigan. Fain stated that Ford and GM have not made significant progress during negotiations. However, he expressed hope for a positive outcome and emphasized the union’s power in influencing the bargaining table.
Ford CEO Jim Farley accused the union of holding a deal on pay and benefits hostage over future battery plants. In response, Fain stated that Farley was misrepresenting the state of negotiations.
The negotiation process has been complex, with electric vehicles (EVs) becoming a key point of contention. The shift towards EVs, which are primarily built with non-union labor in the US, could potentially lead to lower wages and reduced labor demand. Both Ford and GM are seeking to reach an agreement that ensures competitiveness in the industry.
Stellantis has been actively collaborating with the UAW to address employee concerns. While progress has been made, there are still unresolved issues.
The strike, which started two weeks ago, marks the first time the UAW has simultaneously struck against all three major Detroit automakers. The decision to call specific facilities to stop work instead of a mass walkout allows the UAW to preserve its strike fund while creating operational difficulties for the carmakers.
Industry analysts, such as Dan Ives from Wedbush, likened the strike to a slow-moving car crash on black ice.
President Joe Biden recently joined the picket line in Michigan, showing support for the UAW’s fight for better pay and working conditions. The UAW aims to address social inequality through its efforts.
The second week of the strike has been marred by rising tensions and instances of violence. The UAW condemned the carmakers for reported incidents of violence at picket lines, while Stellantis emphasized the need for peaceful negotiations.
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