UAW Contract Talks with Automakers Ahead of Strike Deadline
By Tom Krisher and David Koenig | The Associated Press
As the deadline approaches for the United Auto Workers (UAW) union and Detroit’s three automakers, negotiations for a new contract have hit a roadblock, potentially leading to a strike.
However, talks continued on Thursday, with General Motors (GM) increasing its wage offer and Ford awaiting a counteroffer from the union.
The UAW is demanding a 36% pay increase over four years, while the automakers have counter-offered with an increase of roughly half that amount.
With the possibility of the first simultaneous strike against all three Detroit companies in the union’s 88-year history, the standoff poses challenges not only to the U.S. economy, already grappling with inflation, but also to President Joe Biden, who has championed his support for unions.
UAW President Shawn Fain stated on Wednesday that while the automakers have raised their initial wage offers, they have rejected some of the union’s other demands.
Ford CEO Jim Farley rebutted this, claiming that the company has made four offers without receiving a genuine counteroffer. Farley expressed doubt about avoiding a strike, questioning whether Fain was focused on planning strikes or events for publicity.
Automakers argue that they need to invest heavily in developing and manufacturing electric vehicles while still producing internal combustion vehicles. They believe that a costly labor agreement could increase prices and make them less competitive compared to non-union foreign rivals. The companies assert that they have made fair proposals to the union.
Fain stated that the final decision on which plants to strike will be announced at 10 p.m. Eastern time. While all 146,000 UAW members could potentially go on strike, Fain mentioned that they would begin with a limited number of plants and expand if negotiations continue to stall or if the companies present insulting offers.
Both sides are under pressure to reach an agreement before the deadline. The union knows that its initial demands were unrealistic, and the companies understand that a significant settlement is necessary, including addressing wage disparities.
In light of the impact of the auto industry on the country’s economy, leading Democrats have expressed support for the union. President Biden has previously demonstrated his commitment to the broader economy.
While Biden faced criticism from labor groups last year when he tried to prevent rail workers from striking, he lacks the authority to order autoworkers to stay on the job.
AP Airlines Writer David Koenig contributed to this report from Dallas.
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