The “Sunday scaries” refers to the anxiety and dread that some people experience before the start of the work week. As we enter the next work week, there may be heightened stress and worry in the industry due to UAW President Shawn Fain’s threat to expand the historic “stand-up strike” against the Detroit 3.
This strike is truly historic. It marks the first national strike Ford Motor Co. has faced since 1970, and it appears to be the first strike at Toledo Jeep over a national contract in the century-plus history of automaking and 90 years of UAW representation.
Auto dealers, especially devoted readers of Automotive News, were aware that a work stoppage was a possibility. As the UAW prepared to strike, they took their own measures by developing strike plans, stockpiling inventory, and securing replacement parts.
Suppliers were already vulnerable due to the pandemic’s impact on the economy, which favored automakers and dealers. Some smaller suppliers have little financial cushion to absorb the costs of a major strike. While they may hope for assistance from the Biden administration, many are considering when they will need to resort to layoffs.
You can stay updated on the latest news through our live blog.
It’s important to remember that as recently as 1999, the Detroit 3 accounted for 68 percent of the U.S. light vehicle market, according to the Automotive News Research & Data Center. Now, their market share stands at 40 percent. On a single webpage about the 2023 UAW-Detroit 3 negotiations, we have compiled key statistics, profiles, and analysis of crucial issues.
One notable feature is a summary of each party’s offers, or in the UAW’s case, “demands.”
Currently, both sides seem far apart. The UAW has reduced its wage-increase demands by 4 percent to 36 percent (or from 46 percent to 41 percent when compounded), while the automakers are offering 20 percent nominal raises. This creates a significant gap, but one that could potentially be negotiated.
The issue lies in the UAW’s other demands.
If UAW President Shawn Fain insists on bringing back benefits that caused General Motors and Stellantis to go bankrupt, such as traditional pensions, and proposes ideas like a four-day workweek, reaching an agreement could be long and painful for all parties involved.
However, if Fain could compromise on some of these non-starters, he might be able to gain more ground on topics such as temporary workers or the lengthy employment probation period, currently labeled as a separate “tier” of employment.
Offers have already been made that include a significant ratification bonus, extra holiday time, and expanded parental leave, which could form an appealing agreement to present to the members for a vote.
But in a Sunday morning interview, Fain seemed more inclined to expand the strike to more factories rather than compromise and reach an agreement. On MSNBC’s “The Sunday Show with Jonathan Capehart,” he stated, “Progress is slow, and I don’t want to say we’re closer.”
In the coming days, we will see just how close the sides truly are. Regardless of the outcome, you can always find the latest news, analysis, and commentary in the printed pages of Automotive News and at autonews.com.
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