2023-09-15 19:06:57
A major event in American union life. Since Friday, September 15, the “Big Three” of Detroit (Ford, General Motors and Stellantis) have been facing a massive strike.
Facing the leaders of these three automobile giants stands the UAW (Union of Automobile Workers). A juggernaut of American unionism, in the midst of a makeover after a decade of suffering from internal corruption problems and a frank American disenchantment with union culture. An organization determined to take advantage of the Detroit (Michigan) auto show to highlight its fight.
Ambitions and profits
Wage increase of 46% over four years, 32-hour week paid for 40 hours, reduction in the period during which new hires are paid less, increase in retirement and pensions for union members… The demands are ambitious, but justified by the union by the years of successive inflations in the United States.
“If they have money for Wall Street, they certainly have money for the workers who make the productproclaim the leaders of the organization. We fight for the good of the working class and the precarious”.
They point in particular to the massive growth of the three companies. Between 2020 and 2022, their cumulative operating profit increased from $4.8 billion (€4.5 billion) to $37.2 billion (€34.9 billion). A historic high linked in particular to the ability of these groups to raise their prices in a context of supply difficulties. “The unions know that they have a golden window for legitimate wage demands”estimates Bernard Jullien, economist specializing in the automotive sector.
The leaders of the “Big Three” in Detroit affirm that these profits must be intended to finance their energy transition, and thus make up for their delay on Tesla and Chinese manufacturers. Ford, Stellantis and General Motors have already made proposals to the UAW, which the union did not consider satisfactory.
A risky standoff
Although the UAW has 150,000 members within Ford, General Motors and Stellantis, not all are yet mobilized for the strike. Three sites are currently affected, representing a total of 12,700 employees: the Ford plant in Michigan, that of General Motors in Missouri and that of Stellantis in Ohio. However, in the event of unsuccessful negotiations, the union organization has already announced that it would consider extending the fight to other sites.
Why targeted action? With a nest egg of “only” 825 million dollars (774 million euros) to support workers deprived of wages during the social movement, the UAW strategists wish to limit the cost of the operation for the union, and in fine a disaster for employees.
A standoff, however, risky for the organization, while the car manufacturers have much greater financial resources to hold out. “The UAW must be careful not to overplay, as the three Detroit automakers are flush with cash and can likely wait longer than workers”thus gauges Garret Nelson, analyst at CFRA Research, with Reuters.
A new leader for the UAW
Major event for the American automobile industry, because concerning three companies in their own right, this strike is also the bet of one man, Shawn Fain. Brand new leader of the union, elected president last March, he embodies the renewal of an organization then mired in internal concerns. Problems of corruption in particular, with the conviction of twelve union officials in 2020 and the UAW being placed under judicial supervision for six years.
From the outset, Shawn Fain imposed his style and radicalism. After his election, he refused the traditional handshake with the leaders of the “Big Three”. “I will do it when we have reached an agreement that will ensure a strong future for our members for generations to come”assumes this former electrician for Chrysler (now part of the Stellantis fold).
Known for quoting Bible verses and Malcolm X., the new leader of the UAW is also characterized by his unorthodox methods, such as his strong presence on social networks. With an unshakeable ambition in the background: to reverse several decades of concessions to big bosses on salary issues.
“The manufacturers clearly underestimated the strike force of the unionistsanalyzes Bernard Jullien. For years, the UAW was no longer a threat, mired in its own internal concerns. The “Big Three” had “social peace without compromise”, a dream situation for them. But now it’s back to reality.”.
Return of American trade unionism
If it impresses with its scale, this strike is anchored in a climate favorable to unions. “With the Covid crisis, there has been a real awareness of inequalities in the United Statesexplains Donna Kesselman, sociologist and specialist in social rights in the United States. The result was a renewed interest in trade unionism..
In August 2022, 71% of U.S. citizens “approved” union action, a percentage never reached since 1975. And the strike led by the UAW against the “Big Three” is no exception, supported today by nearly 75% of Americans.
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