Just a day before the contract deadline, the leader of the United Auto Workers (U.A.W.) expressed readiness for a potential strike against the three major Detroit automakers. The initial plan involves a limited number of factories going on strike, with the possibility of the walkout expanding if negotiations fail to progress.
In addition, U.A.W. president Shawn Fain firmly rejected the idea of extending the existing four-year contracts with General Motors, Ford Motor, and Stellantis beyond their expiration on Thursday night. He emphasized that September 14 is not a mere reference point, but a firm deadline during his address to union members on Facebook Live.
The locations for the initial strike will be communicated to members on Thursday night, setting the stage for a walkout on Friday. The strategic choice of a limited number of plants aims to disrupt automakers’ production while ensuring that a significant portion of the union’s 150,000 members continue working and receiving paychecks.
To support striking workers, the union intends to provide $500 per week in compensation and cover their health insurance premiums. With an impressive strike fund of $825 million, the union has the means to sustain payments to workers in a full strike against all three companies for approximately three months.
The union’s initial proposal to the companies includes a demand for a 40 percent wage increase over four years, based on the average rise in pay packages for the companies’ chief executives during the same period. Furthermore, the union seeks regular cost-of-living adjustments to counter inflation and improve retiree benefits, shorter work hours, and an end to the tiered wage system that disadvantages new hires with lower wages.
Negotiating separately with the union, the companies have responded with counterproposals of roughly half the wage increase the union is asking for, according to Mr. Fain. The companies have essentially rejected all other demands. As of now, there is no immediate response from the companies regarding Mr. Fain’s announcement and his characterization of the negotiations.
Erik Gordon, a business professor at the University of Michigan specializing in the auto industry, believes that a strike is highly probable. While he acknowledges the potential for reaching an agreement on wages, he deems the complexity of the remaining issues unsolvable within the final 36 hours through simple compromise.
The looming possibility of a large-scale strike coincides with the automakers’ near-record profits, alongside their adjustment to the transition into electric vehicles. With significant investments in new technologies, electric models, battery plants, and factory retooling, G.M., Ford, and Stellantis face both opportunities and challenges.
This is a developing story. Check back for updates.
Kurtis Lee contributed reporting.
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