United Auto Workers members went on strike at the General Motors Lansing Delta Assembly Plant in Lansing, Michigan on September 29, 2023. This move signals a shift in strategy by the union and has led some analysts to believe that the parties are actually getting closer to reaching a deal. The surprise work stoppage at Ford Motor’s Kentucky Truck Plant, which involves 8,700 workers, is considered significant as it is the most crucial plant for the union, bringing in $25 billion in revenue annually. The strike is expected to have a ripple effect on other Ford plants and suppliers.
UAW President Shawn Fain referred to this as a “new phase” of strikes and contract negotiations with Ford, General Motors, and Stellantis, the parent company of Chrysler. The element of surprise is being used as a tactic to keep the automakers on edge during negotiations. Fain stated that they are no longer waiting until Fridays to escalate their strike and are prepared to call on more locals to walk out at any time.
By initiating the strike at Ford’s most profitable factory, the UAW leaders may be trying to demonstrate to their members that they have fought hard to have their demands met. This strategy could increase the chances of the membership ratifying a potential new contract. Analysts believe that the UAW leaders are aiming to make Ford make one last capitulation before announcing that the union has secured all possible concessions in terms of wages, benefits, and job protection.
While only a portion of UAW members are currently on strike, the escalation in Kentucky could be just the beginning. There are other plants that the union could target for each automaker, including full-size pickup truck plants and large SUV plants. GM managed to avoid a strike at its most profitable SUV plant in Texas by offering to include battery cell plant workers in the national agreement, although the details are still being negotiated.
It is uncertain how the situation will play out, but one potential outcome is a rapid escalation followed by a resolution. Another possibility is the union depleting its resources, specifically its strike and defense fund, and the automakers holding out until that happens. The UAW could also continue rotating strikes or filing additional unfair labor practice charges. Mediation or legal resources may also be sought. An automaker could submit a “last, best and final offer,” which is typically the final proposal when negotiations reach an impasse. Ford may be close to reaching that point as an executive stated that the automaker was at the limit of what it can offer in terms of economic concessions.
Regardless of the outcome, the contracts will have ripple effects on the companies, potentially leading to reorganizations, cost cuts, and future investments and jobs. It is likely that union jobs will be cut through product allocation, plant closures, or other means to offset increased labor costs once the contracts are finalized.
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