United Auto Workers President Shawn Fain is set to announce whether recent negotiations with the Detroit Three automakers have made enough progress to prevent further strikes. Fain will deliver a video address at 2 p.m. EDT, covering updates on the substantive bargaining. This announcement comes at a different time than the previous two Fridays, indicating a potential change in strategy.
Ahead of the announcement, Fain emphasized that the fight for better contracts goes beyond autoworkers and extends to the entire working class. He expressed his concerns about the lack of benefits for many workers, calling it “shameful.” Fain’s social media post on Thursday further kept automakers guessing, showing an image of three men in suits with their faces obscured by the logos of the Detroit automakers. The post hinted at the possibility of one automaker receiving better contract terms, reminiscent of the reality show “The Bachelorette.”
Insiders familiar with the negotiations stated that talks have intensified this week after several days of little movement. In an effort to end the cycle of walkouts that have impacted profits and strained suppliers, General Motors, Ford Motor, and Stellantis have made new proposals. However, the pressure on these automakers has mounted with Tesla cutting prices on its electric vehicle models, increasing the competitiveness in the market.
While the strike did not show an immediate impact on the monthly U.S. jobs report, its effects may be reflected in the report for the current month if the walkout continues. According to Deutsche Bank’s estimates, GM, Ford, and Stellantis have experienced operating earnings losses of $408 million, $250 million, and $230 million, respectively, due to lost production.
Ford’s latest wage offer includes raises of over 20% throughout the contract’s lifespan. With proposed cost-of-living adjustments, workers may see pay increases of close to 30%. Fain’s Friday video addresses have become significant events since he initiated coordinated strikes at GM, Ford, and Stellantis plants in mid-September. So far, the union has ordered walkouts at five assembly plants and 38 parts depots.
In addition to the negotiations with the United Auto Workers, the Canadian union Unifor is facing a deadline on Monday to reach a new deal with GM. Unifor represents approximately 4,300 workers covered by these talks. A deal with Ford was recently reached, albeit with a narrow margin of approval from the members.
These developments represent crucial moments in the ongoing negotiations between the United Auto Workers and the Detroit Three automakers. The outcome of Fain’s announcement and the resolution of the labor talks in Canada will have significant implications for the industry and the working class as a whole.
Joe White is a global automotive correspondent for Reuters, based in Detroit, who extensively covers the auto and transport industry. He is also the author of “Comeback: The Fall and Rise of the American Automobile Industry.”