The United Auto Workers (UAW) president unveiled the union’s strategy for striking the “Big Three” automakers during a town hall meeting. He stated that the union may conduct targeted walkouts to keep the companies off-balance.
The UAW’s contracts with Ford, General Motors, and Stellantis are set to expire on Friday. The union has made it clear that it will strike any company that doesn’t have a satisfactory deal in place by the deadline.
Unlike previous strikes, where the union targeted all three companies simultaneously, there is a possibility that they will choose to strike select facilities to disrupt production. This approach would be more cost-effective and create confusion for the companies.
During the town hall meeting, UAW President Shawn Fain introduced the “standup strike” strategy, drawing inspiration from the historic “sitdown” strike in Flint, Michigan in 1936.
“This is going to create confusion for the companies. It’s going to keep them guessing on what might happen next.”
– UAW President Shawn Fain
“This is going to create confusion for the companies,” Fain explained, emphasizing the strategy’s impact. “It’s going to keep them guessing on what might happen next. And it will turbocharge the power of our negotiators.”
Fain stated that two hours prior to the strike deadline, the union would inform local affiliates whether they were expected to strike. Those not instructed to strike would be required to hold back.
“This strike demands discipline,” Fain emphasized.
While the targeted strikes would cause less disruption for the auto companies, they would also have a lesser impact on workers. The union has a strike fund of $825 million, which would provide workers with $500 per week, significantly less than their regular earnings. With all workers under the three contracts participating, the fund could last approximately 11 weeks.
The targeted approach would allow many union members to continue working while still causing production and distribution challenges for the companies.
The union is currently negotiating new four-year agreements with the companies. However, Fain stated that despite some progress, the two sides still have significant differences on certain key issues.
One of the major points of contention is the union’s proposal for a 40% pay increase over the life of the contract to compensate for inflation and previous concessions. The companies have offered lower percentages, with Ford at 20%, GM at 18%, and Stellantis at 17.5%, which the union considers insufficient.
The union has also raised concerns about the “two-tier” system that pays newer workers less than veterans for the same work. The companies have offered to reduce the progression timeline from eight to four years, but the union insists on a 90-day period for workers to reach the top pay rate.
Additional differences exist regarding profit sharing, temporary employees, and plant closures.
Ford CEO Jim Farley expressed hope for a resolution in a statement, noting that the company has made increasingly generous offers to the union.
Fain emphasized that the possibility of an all-encompassing strike is still on the table, depending on the progress of negotiations. However, the union plans to start with limited disruptions.
“Your local will only strike if you are called upon to do so,” Fain explained.
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