The auto workers’ strike against Detroit’s Big Three has entered its fourth day with no signs of a breakthrough, raising concerns of a potential spread. A spokesperson for General Motors stated that negotiations between the company and the United Auto Workers are ongoing.
Currently, the strike is limited to approximately 13,000 workers across three factories, one each at GM, Ford Motor, and Stellantis. However, GM has issued a warning that an assembly plant in Kansas City, employing 2,000 UAW-represented workers, may soon be idled due to a shortage of supplies. This shortage arises from a GM plant near St. Louis, where workers walked off the job on Friday.
Workers at the Kansas City plant are responsible for building Chevrolet Malibu and Cadillac XT4 vehicles. Meanwhile, Ford has temporarily laid off 600 non-striking workers at its assembly plant in Wayne, Michigan, following the strike at Michigan Assembly Plant’s final assembly and paint departments. The company explained that these employees produce components that require e-coating for protection, a process conducted in the paint department, which is affected by the strike.
Treasury Secretary Janet Yellen expressed hope for a swift resolution, emphasizing the need to assess the strike’s economic impact before drawing conclusions. Some experts anticipate that the strike could lead to increased prices for new and used cars, resulting in a $5.6 billion loss in wages and automaker earnings.
In response to the prolonged strike, President Joe Biden will dispatch two top administration officials, acting Labor Secretary Julie Su and senior aide Gene Sperling, to Detroit to meet with both sides. Biden has voiced support for the UAW, stating that automakers have not adequately shared their profits with workers.
An administration official clarified that Su and Sperling will not mediate or participate in bargaining but are present to support constructive negotiations. The official shared these details anonymously, being unauthorized to disclose private discussions.
UAW President Shawn Fain rejected Stellantis’ offer to increase wages by 21% over four years. Ford and GM have each proposed a roughly 20% pay raise, while the union seeks a 36% increase over a four-year contract. The union aims to eliminate the two-tier wage model, provide defined benefit pensions to all employees, limit the use of temporary workers, implement a four-day workweek, and enhance job protections.
Instead of a full-scale strike involving all 146,000 members, the UAW has chosen to target three factories. This strategy aims to prolong the strike fund’s longevity, amounting to $825 million. Currently, workers have walked out of a GM plant in Wentzville, Missouri, a Ford plant near Detroit, and a Stellantis factory in Toledo, Ohio, which produces Jeeps.
A significant aspect of the UAW’s strategy is the threat of escalating the strike if negotiations are not satisfactory. Fain stated that more factories could be targeted, potentially within a day or a week.
Harry Katz, the Jack Sheinkman Professor of Collective Bargaining at Cornell University, commented on the UAW’s tactics, highlighting the increase in uncertainty. He described Fain as a tough and militant leader intent on avoiding concessions. Katz predicts that the UAW will secure a robust agreement, but the compromise will depend on how and when it is reached.
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