Massive UAW Strike Impacts Ford, GM, and Stellantis Plants – Brace for Major Disruptions

Members of the United Auto Workers union hold a rally and practice picket near a Stellantis plant in Detroit, Aug. 23, 2023.

Michael Wayland / CNBC

DETROIT – Thousands of members of the United Auto Workers went on strike at three U.S. assembly plants of General Motors, Ford Motor, and Stellantis, after the union and the automakers failed to reach a deal on a new labor contract Thursday night.

“The UAW Stand Up Strike begins at all three of the Big Three,” the union said in a post on Twitter, just after midnight Friday.

The facilities are GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio. For Ford, UAW President Shawn Fain said only workers in paint and final assembly will be on strike.

“We have to fight for our share of economic and social justice in this strike,” Fain said outside the Ford facility in Wayne. “We will stay here until we get our share of economic justice. And it doesn’t matter how long it takes.”

The selected plants produce highly profitable vehicles for the automakers that continue to be in high demand. About 12,700 workers – 5,800 at Stellantis, 3,600 at GM, and 3,300 at Ford – will be on strike at the plants in total, the union said. The UAW represents about 146,000 workers across Ford, GM, and Stellantis.

UAW President Shawn Fain, center, talks to reporters as union members strike outside a Ford plant in Wayne, Michigan, Sept. 15, 2023.

CNBC | Michael Wayland

“If the automakers take care of their workers, we will go back to work,” Fain said early Friday. “But if they don’t, we will intensify our efforts.”

The union selected these plants as part of targeted strike plans initially announced Wednesday night by Fain, who has been negotiating with all three automakers simultaneously and has been reluctant to compromise on the union’s demands.

Read more: General Motors sweetens its offer to include 20% wage increase

“For the first time in our history, we will strike all three of the ‘Big Three’ at once,” Fain said during a live stream on Facebook and YouTube. “We are using a new strategy, the ‘stand-up’ strike. We will call on select facilities, locals, or units to stand up and go on strike.”

Fain has referred to the union’s plans as a “stand-up strike,” in reference to historic “sit-down” strikes by the UAW in the 1930s.

Key proposals from the union include 40% hourly pay increases, a reduced 32-hour workweek, a return to traditional pensions, the elimination of compensation tiers, and the restoration of cost-of-living adjustments (COLA), among other items. The negotiations also involve enhanced retiree benefits and improved vacation and family leave benefits.

Despite President Joe Biden’s involvement, a deal was not reached by Thursday night. Ford, in a statement, said the UAW presented its “first substantive counterproposal” but showed little movement from their initial demands.

“If implemented, the proposal would significantly increase Ford’s current labor costs, which are already higher than the labor costs of non-unionized automakers in the United States,” Ford said. “The union plans a work stoppage at 11:59 p.m. eastern.”

The automakers have made proposals that address some of the UAW’s demands, including wage increases and altered benefits. However, the union deems these offers inadequate.

Targeted strikes focus on key plants that can disrupt production due to a lack of parts. While not unprecedented, Fain’s approach to work stoppages is unique. He plans to initiate targeted strikes at select plants and potentially increase the number of strikes based on the progress of negotiations.

Ford CEO Jim Farley: No way we would be sustainable as a company with UAW's wage proposal

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