2023-09-15 11:39:11
The powerful UAW (United Auto Workers) union began a strike this Friday (15) at three crucial car factories in the United States, the first simultaneous strike by workers at the three big Detroit automakers: General Motors, Ford and Stellantis.
After negotiations failed, workers outside a Ford factory marked the start of the strike with honking horns and applause at midnight on Thursday.
“Tonight, for the first time in our history, we are going on strike in the ‘Big Three,'” UAW union president Shawn Fain said in an internet broadcast shortly before the deadline for a deal.
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The mobilization of the “Big Three” could destabilize the sector and even the United States economy.
However, only 12,700 employees will not work this Friday, according to estimates by the UAW union, which represents 150,000 workers in the sector.
Fain explained that the strike will affect one plant at each automaker: General Motors’ Wentzville (Missouri) plant, Stelantis’ Toledo (Ohio) plant and Ford’s Wayne (Michigan) plant, but only in final assembly operations. and painting, which are essential.
The UAW is demanding a 36% pay increase over four years, while the three American automakers have not exceeded 20% in their counterproposals, according to the union.
Detroit’s historic giant groups also refused to grant additional vacation days and increase pensions, paid from company-specific funds.
“We will not allow the ‘Big Three’ to prolong discussions for months,” warned Fain during the week.
Many workers say companies in the sector must come up with better proposals to compensate for low wages and benefit cuts following the 2008 financial crisis.
The financial collapse led both GM and Chrysler, which now belongs to the Stellantis group, to the path of restructuring, as both were close to bankruptcy.
All three companies have recorded high profits in recent years.
“This company has been making money because of our work,” said Paul Sievert, who has worked at the Ford plant in Wayne for 29 years. “I think it’s time we got something in return.”
Ford CEO Jim Farley questioned the strike leader on Thursday.
“I don’t know what Shawn Fain is doing, but he’s not negotiating the contract with us when it’s about to expire. But I know he’s busy preparing a strike,” he commented.
“He wants a historic strike in the three groups, but we want to make history with a historic agreement,” he said.
An electoral risk for Biden
A prolonged social conflict could have political consequences for President Joe Biden, whose economic balance is the target of criticism, in particular due to persistent inflation in the country.
Campaigning for reelection in 2024, Biden is entering delicate territory and needs to strike a balance between his declared support for unions and fear about the consequences of the strike for the American economy.
On Thursday night, the president spoke by phone with Fain and the automaker executives to receive information about the negotiations.
“Consumers and traders are, in general, relatively protected from the effects of a short strike”, explained the vice president of consultancy AEG, Tyler Theile.
But with inventories representing 20% of what the industry had in 2019, during GM’s last strike, “they could be affected much more quickly” than four years ago, he said.
JPMorgan analysts believe a sharp increase in wages would have an impact on vehicle sales prices, leading drivers to “keep their cars longer” rather than buying a new model.
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