The United Auto Workers union is prepared to initiate a strike against the Detroit automakers if labor deals are not reached by the Thursday deadline at 11:59 p.m. ET, according to UAW President Shawn Fain’s statement on CNBC’s “Squawk Box” on Wednesday.
Fain shared this information following a meeting with local union leaders where he discussed plans for targeted strikes at specific General Motors, Ford Motor, and Stellantis plants if agreements are not reached by Thursday.
When asked about the probability of a strike specifically against Ford, Fain stated, “As it stands right now, all three are most likely to be struck unless we get a deal by Sept. 14 at midnight. All three are expected to deliver for their workers and if they don’t, there will be action,” during an interview with CNBC’s Phil LeBeau.
Targeted strikes refer to work stoppages limited to certain plants, related to local contract issues, which is different from national strikes where all union members leave plants. The last round of negotiations with GM four years ago involved a national strike.
Although there is a lot of work ahead, Fain believes that the UAW and automakers can reach contracts before the deadline, but he urged the companies to take the negotiations seriously.
United Auto Workers President Shawn Fain greets workers at the Stellantis Sterling Heights Assembly Plant, to mark the beginning of contract negotiations in Sterling Heights, Michigan, U.S. July 12, 2023.
Rebecca Cook | Reuters
During an interview on Wednesday, Fain stated that the union is still pursuing double-digit wage increases. The UAW initially demanded 40% hikes but has since lowered the request to 36%. Fain mentioned that the union’s proposals for pay raises to the automakers have not fallen below 30%.
Key demands from the union include 40% hourly pay increases, a reduced 32-hour work week, a return to traditional pensions, the elimination of compensation tiers, and the reinstatement of cost-of-living adjustments, among other items.
On Tuesday night, Ford CEO Jim Farley expressed optimism about reaching an agreement with the UAW within the next two days. However, he emphasized that there are limits to what Ford is willing to offer, despite their generous offer that includes pay increases, elimination of tiers, inflation protection, increased vacation time, and larger retirement contributions.
Farley stressed the need to protect the company’s future investments and profitability, stating, “there is a limit because we have to protect for the future, future investments and the profitability of the company funds those.”
Additionally, Farley stated that Ford is not supportive of a four-day workweek.
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