United Auto Workers Strike Continues as Negotiations Resume
The United Auto Workers (UAW) strike against the Big Three automakers has entered its second day, with the UAW and the companies resuming negotiations on Saturday. The UAW reported “reasonably productive conversations with Ford today” and is also scheduled to meet with General Motors on Saturday. Stellantis, the parent company of Jeep and Chrysler, announced that it will meet with the UAW on Monday.
The UAW strike currently involves approximately 8% of the union’s autoworkers, or around 12,700 UAW members, at plants in Toledo, Wentzville, and Wayne. Despite the strike, the UAW has instructed the majority of its members to continue working. However, on Friday, Ford and GM announced that they would temporarily lay off 2,600 nonstriking workers, as their facilities rely on work from the striking plants.
Pay and Benefit Disputes Continue
Differences in pay and benefits continue to be a major point of contention in the contract negotiations between the UAW and the automakers. The union has demanded a 36% wage increase over four years, while Stellantis has offered a cumulative wage increase of 21% over the course of a new contract. Ford and GM have offered raises of 20%.
Strike Plans and Support for Laid-Off Workers
The UAW has not disclosed its full strike plans and UAW President Shawn Fain has stated that further strikes depend on the progress of negotiations. However, Fain assured that laid-off workers will receive financial support. In Wayne, 600 laid-off workers from an idled Ford stamping plant have been informed that they can sign up for the $500 weekly strike benefit provided by the union.
Layoffs and Impact on Workers
GM and Ford have attributed the layoffs of nonstriking workers to the strike, as it has disrupted the supply of materials to the nonstriking plants. The affected workers will not receive the usual unemployment benefits from the companies, as GM stated that they are operating under an expired contract.
Historic Simultaneous Strike
This marks the first time that the UAW has initiated a strike against all three automakers simultaneously. The last national auto strike occurred in 2019 and was directed solely at GM.
Production Impact and Controversies
The ongoing strike has disrupted production at various plants. The Stellantis plant in Toledo, which produces Jeep Wranglers and Gladiators, is among the affected facilities. Stellantis had made a final offer that included a plan to save jobs at a factory in Belvidere, Illinois, that had been closed earlier this year, resulting in the layoff of 1,200 workers. However, UAW President Shawn Fain accused Stellantis of using the Belvidere workers as a bargaining tool.
Compensation and Benefits Disputes
The compensation of top executives at the automakers has drawn criticism, with examples including a 34% increase in GM CEO Mary Barra’s compensation to $29 million in 2021, a 21% increase in Ford CEO pay to $21 million in 2021, and Stellantis CEO Carlos Tavares earning about $25 million last year. In contrast, full-time UAW workers earn between $18 and $32 an hour, along with profit-sharing payments and bonuses. Temporary workers earn lower wages, around $16 to $19 an hour, without profit-sharing or other bonuses, and may be stuck in temporary status for extended periods. The companies have proposed raising starting wages to $20 an hour and Ford has proposed converting existing temporary workers to full-time status within 90 days. The automakers argue that their current offers represent significant improvements in wages and benefits.
Union Demands and Support for Striking Workers
The union’s demands, which General Motors says it cannot meet while remaining profitable, include a 32-hour workweek, defined-benefit pensions for all workers instead of 401(k) accounts, and company-financed health care in retirement. Despite the challenges, striking workers outside the Bronco and Ranger plant in Michigan have received a significant amount of support. Passers-by on Michigan Avenue have honked their car horns, while relatives, friends, local businesses, and even strangers have delivered food and other supplies to the striking workers.
Reporting by Gurley in Detroit.
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