The United Auto Workers (UAW) is strategically expanding its historic strike against Detroit’s Big Three automakers, General Motors (GM) and Stellantis, to include parts distribution centers across 20 states. In a Facebook Live address, UAW President Shawn Fain announced that workers at 38 GM and Stellantis facilities will walk off the job at noon local time. Fain emphasized the need for strong action to push GM and Stellantis towards reaching an agreement. The UAW is not targeting Ford for additional strikes, as progress is being made with the company on wage and job security issues.
Ford has made significant concessions, including dismantling the two-tiered wage system at its Components and Sterling axel assembly plant in Ypsilanti, Michigan, reinstating cost-of-living adjustments, and allowing the right to strike over plant closures. Ford has also enhanced profit-sharing payments for temporary workers. The company is committed to reaching a deal that benefits both the workforce and Ford’s future. However, there are still substantial gaps to be closed on key economic issues.
Approximately 5,600 Big Three workers will join the nearly 13,000 who are already on strike. The UAW aims to create widespread manufacturing disruptions by selecting parts distribution centers. This strategy increases complexity and makes it more difficult for the companies to predict or manage disruptions. With thousands of parts in a vehicle, even the absence of one can prevent completion.
The UAW’s decision to escalate the work stoppage highlights the significant divide between the union and the automakers. The union’s demands include a 36% pay increase over a four-year contract, annual cost-of-living adjustments, pension benefits for all employees, greater job security, and a four-day work week. GM and Stellantis have rejected the union’s proposals for job security, reduced use of temporary workers, and profit-sharing, leading to the expanded strike.
The automakers argue that they face competitive pressure from companies like Tesla and foreign car makers, while also needing to invest in the growing electric vehicle market. They believe their counteroffers are reasonable and are open to further negotiations. President Biden has expressed support for the striking autoworkers’ demand for a larger share of industry profits.
The UAW is specifically targeting parts distribution facilities to address the two-tiered wage system present across the industry. Workers at these centers have been disproportionately impacted and are stuck on a lower wage scale. The extended strike will make it harder for the companies to repair cars at their dealerships. The UAW’s strategic and selective striking aims to maximize worker leverage and keep the automakers off balance.
The UAW’s stand-up strike, inspired by the sit-down strike in the 1930s, began on September 15 when Ford, GM, and Stellantis workers in Michigan, Missouri, and Ohio walked off the job. The automakers responded with temporary layoffs, adding to the impact of the strike. Workers from the impacted plants, as well as those from the newly added distribution sites, will be paid through the UAW strike fund.
The expanded strike affects various GM and Stellantis parts distribution facilities across the United States. GM has expressed disappointment and believes the strike is unnecessary and negatively affects its team members and communities. The company has made five separate economic proposals to address employees’ concerns. Stellantis has not yet responded to requests for comment.
Overall, the UAW’s strategic approach aims to exert pressure on GM and Stellantis to meet their demands. By expanding the strike to parts distribution centers, the UAW complicates the repair process and disrupts operations. The union’s selective striking strategy maximizes worker leverage while keeping the automakers uncertain of their next moves.
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