The United Auto Workers (UAW) will expand the ongoing strike against General Motors (GM) and Ford, according to UAW President Shawn Fain. This simultaneous strike, which is the first of its kind against the Detroit Three automakers, is now entering its third week. The strike will include Ford’s Chicago assembly plant and GM’s Lansing, Mich., assembly plant, involving approximately 7,000 workers. This expansion brings the total number of striking workers to 25,000. However, Stellantis will not be affected by the strike.
In a video announcement, Fain stated that despite the UAW’s willingness to negotiate, Ford and GM have not made significant progress. He mentioned that there was a sudden increase in interest from the companies prior to his announcement. Additionally, Fain revealed that the UAW had planned to announce a new strike at Stellantis, but the company made significant changes to its contract proposal right before the announcement.
The strikes at the Ford and GM plants will commence at noon on Friday. However, negotiations are still ongoing, and Fain remains hopeful for a resolution. The UAW aims to address concerns regarding corporate greed and excessive demands on workers while expecting a fair deal from the companies.
On Thursday, the UAW presented a counter-proposal to Stellantis, and talks between the UAW and negotiators for the Detroit Three have been described as active. The UAW plans to continue their work stoppages until a new contract is ratified.
The main issues driving the strike are higher wages and benefits for workers, as well as the elimination of a tiered pay system that provides substantially lower compensation for newer employees. However, automakers argue that the UAW’s demands would negatively impact their profits as they strive to compete with nonunion manufacturers like Tesla.
The strike originally began on September 15, when workers from GM, Ford, and Stellantis struck at one plant each. On September 22, the UAW escalated the strike by including workers from GM and Stellantis distribution facilities across 20 states. However, the UAW did not strike at Ford distribution facilities due to progress in negotiations with the company.
Currently, approximately 18,300 UAW members from the Detroit Three are participating in the strike, which accounts for about 12% of the total 146,000 union members employed by the automakers. Striking workers are receiving $500 per week from the UAW’s strike fund. Previously, the UAW shut down one assembly plant at each of the Detroit Three, along with 38 parts distribution centers at GM and Stellantis.
While the strike has had a limited impact on the automakers so far, analysts estimate that GM, Ford, and Stellantis earn up to $15,000 per vehicle from their respective large pickup truck models. This ongoing strike presents a new strategy from the UAW, using smaller-scale strikes to maintain pressure on the automakers rather than a large-scale walkout.
However, there is still a significant gap between the UAW and the companies in terms of key economic issues. Fain is demanding a 40% pay increase over a four-year contract, a stance that President Biden has supported during his visit to Detroit. In contrast, the companies have offered approximately 20%. The UAW is also advocating for the elimination of the two-tier wage system, which pays new hires substantially less than veteran workers.
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