Positive Progress: UAW Leader Shawn Fain Optimistic about Strike Negotiations with Automakers

United Auto Workers President Shawn Fain declared on Friday that the union’s ongoing strike against Detroit’s Big Three automakers is yielding significant concessions, negating the need for further expansion of the work stoppage at this time.

“We are achieving victory, making progress, and moving in the right direction,” proclaimed the union leader in a Facebook live broadcast.

As proof of this momentum, Fain shared that General Motors has agreed to include employees at its upcoming electric vehicle battery plant in Indiana under the UAW contract. “Today, we compelled GM to say ‘yes’ when they would have preferred to say ‘no’,” he boasted.

However, while negotiations are progressing, Fain emphasized that Ford, GM, and Stellantis (the parent company of Chrysler, Dodge, Jeep, Ram, and various foreign car brands) still need to meet the union’s demands on issues like retirement benefits.

“Our strike is having an impact, but we have not reached our goal yet,” he acknowledged. “Every action we have taken has been focused on achieving a historic contract that reflects the significant profits of the Big Three.”

The UAW’s demands include a 36% pay increase over four years, annual cost-of-living adjustments, pension benefits for all employees, enhanced job security, an expedited route to full-time status for temporary workers, and a four-day work week. Additionally, the union is pushing for the elimination of the two-tiered wage system implemented by the automakers in 2007 during their financial struggles.

The automakers argue that they have made reasonable counteroffers, asserting that the UAW’s wage demands and other requests would make it challenging to compete with other car manufacturers. Despite this, automakers have maintained their commitment to negotiating in good faith. Ford stated on Thursday that it will “continue to work towards finding solutions to address outstanding issues.” GM echoed this sentiment on Friday, expressing their goal of reaching an agreement that benefits their employees and ensures their future success.

“Transformative win”

Fain revealed that the UAW was initially planning to initiate an additional strike at GM’s plant in Arlington, Texas. However, the union leadership changed their course after receiving a written agreement from the automaker, stating that GM will include its EV battery manufacturing in the UAW contract. Fain referred to this agreement as a “transformative win” for the union’s members.

The GM plant in Arlington produces popular vehicles like the Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL, and the Cadillac Escalade and Escalade-V. This addition of EV plants to the UAW contract is considered a significant development and a testament to the union’s determination to secure top wages for workers.

Battery plants are crucial for the UAW’s future survival as the auto industry transitions from internal combustion engines to electric vehicles. If nonunionized battery plants pay less than UAW-represented assembly plants for traditional gasoline-powered cars, workers who may eventually lose their jobs at gasoline engine and transmission plants would have no alternative for maintaining their wages and benefits. The automakers have argued that these plants, mostly operated through joint ventures with South Korean battery makers, require separate negotiations.

Fain also highlighted other concessions made by the Big Three. Ford initially offered a 9% wage increase in its negotiations, which has now more than doubled to 23%. Stellantis and GM have also increased their wage offers to 20%. Furthermore, Ford and Stellantis have agreed to restore cost-of-living adjustments and reduce the time it takes for workers to achieve top wages.

The Associated Press contributed to this report.