UAW’s Impending Strike in Detroit: A Sneak Peek into the Consequences

Autoworkers in Detroit are planning to walk off the job Friday if their union leaders can’t agree on a new labor contract with Ford, General Motors, and Stellantis.

During a Facebook Live event late Wednesday, United Auto Workers President Shawn Fain announced that members will use a “stand up” strike strategy. This involves employees at specific locations leaving their posts starting at midnight before Friday morning. The walkouts will occur at assembly plants and parts distribution centers across the Big Three automakers.

Fain stated, “Based on the progress of our bargaining, we will announce additional locals that will join the strike. This way, our strike at each company will continue to grow over time.”

If the negotiations stall or the Big Three continue to offer “insulting offers,” more employees will join the strike. Failure to reach a new deal would result in the first UAW strike since the 2019 GM strike, as well as the largest strike by active employees in 25 years.

The potential strike could have significant effects, including a surge in car prices, $5.6 billion in economic losses for the automakers, and a potential reduction of the nation’s GDP by 0.3%, according to forecasts.

What are their demands?

At the top of UAW’s list of demands are substantial pay raises for members.

The UAW initially requested a 46% pay raise over four years but revised it to a 36% wage increase. This would involve an 18% immediate raise followed by annual increases of 4% or 5% for the remainder of the contract.




What a potential United Auto Workers union strike could look like
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“Most generous offer in 80 years”

The Big Three have not fully met the union’s demands but have made reasonable counteroffers and are open to further negotiation. The companies argue that they are under pressure to keep costs and car prices low in order to compete with Tesla and overseas automakers.

According to Ford Motor CEO Jim Farley, the company has made significant offers to UAW members, including pay increases, elimination of tiers, inflation protection, increased vacation time, paid holidays, and larger retirement contributions. Farley described the package as the “most generous offer in 80 years.” However, Ford has not received a response from the UAW to their latest offer.

Other union demands include pension benefits for all employees, limitations on temporary workers, additional paid time off, including a four-day workweek, and stronger job protections, such as the right to strike over plant closings.

The UAW also seeks to eliminate the two-tiered pay system and ensure all employees receive fair compensation and benefits.


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Ford Motor CEO Jim Farley said earlier this week that the company offered UAW members the “most generous offer in 80 years,” but hasn’t heard back from the union.
Paul Sancya/AP

According to Adam Hersh, senior economist at the Economic Policy Institute, the Big Three have the financial ability to meet workers’ demands. Hersh emphasized that the companies have earned substantial profits in recent years and argue that paying higher wages would not jeopardize their investments in electric vehicles.

Reference

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