United Auto Workers Union Expands Strikes Against Detroit Automakers
DETROIT (AP) — The United Auto Workers (UAW) union has further expanded its strikes against Detroit automakers, ordering an additional 7,000 workers to walk off the job in Illinois and Michigan. This move is intended to put more pressure on the companies, Ford and General Motors (GM), to improve their contract offers.
The recent expansion marks the second time the UAW has widened the walkouts, which originally started at three assembly plants two weeks ago. The most recent additions include a Ford plant in Chicago and a GM assembly factory near Lansing.
In a video appearance, UAW President Shawn Fain explained to workers that the strikes were escalated due to the companies’ refusal “to make meaningful progress” in ongoing contract talks. However, Jeep maker Stellantis was spared from the third round of strikes.
Ford and GM responded to the UAW’s actions by engaging in a war of words, with both companies releasing statements criticizing the union. Ford accused the UAW of hindering a deal primarily over union representation at electric vehicle battery plants, most of which are joint ventures with a Korean manufacturer.
Ford stated, “There is still time to reach an agreement and avert disaster,” adding that the strikes are starting to impact fragile companies that supply parts to the affected factories.
GM’s manufacturing chief also weighed in, claiming that the union is calling for additional strikes “just for the headlines, not real progress.” The GM plant in Delta Township, near Lansing, which produces large crossover SUVs, will be joining the strike, while a nearby metal parts stamping plant with 300 workers will remain open.
Meanwhile, the Ford plant in Chicago manufactures the Ford Explorer and Explorer Police Interceptors, along with the Lincoln Aviator SUV. Fain expressed hope that the union could reach deals with all three companies, mentioning that ongoing negotiations are still underway.
Regarding Stellantis, Fain revealed that progress had been made moments before his appearance on Facebook Live. The company agreed to unspecified cost-of-living raises, the right not to cross a picket line, and the ability to strike over plant closures.
Among the workers at the Lansing-area factory joining the strike, Raneal Edwards conveyed her surprise and happiness. She emphasized that the strike was about more than just wages, stating, “It’s about having security at our jobs.”
Edwards believes that the UAW’s strategy of gradually adding more plants to the strike will be effective, adding an element of uncertainty for the companies. However, GM manufacturing chief Gerald Johnson informed workers in a note that the company has yet to receive a counteroffer from union leaders to an economic proposal made on September 21.
Ford CEO Jim Farley accused the union of holding an agreement hostage over union representation at future electric vehicle battery factories. Farley stated that high wages at these facilities would make Ford’s electric vehicles more expensive compared to those from competitors like Tesla.
Farley clarified that Ford’s battery plants are joint ventures with a South Korean battery maker and have not yet been organized by the UAW since no workers have been hired for those plants yet.
Fain later responded to Farley’s comments, accusing him of lying about the negotiations. Fain claimed that the union gave Ford a counteroffer on Monday but has not received a response. He pointed out that significant differences remain on economic issues, such as a defined-benefit pension for workers hired after 2007 and health insurance for retirees.
Both sides are digging in for what could be a prolonged battle, according to Wedbush analyst Dan Ives. Ives remarked that President Joe Biden’s administration is closely observing the clash between union demands and his push for cleaner electric vehicles. Biden, who aims to be the most union-friendly president in history, recently visited the Detroit area to show support for the striking workers.
There is concern that the cost of an average electric vehicle could increase by $3,000 to $5,000 due to the companies’ offers, which would ultimately impact consumers. Ives warned that such costs “would be a torpedo to the future business models” of the automakers.
The issue of organizing electric vehicle battery plants is crucial for the union’s future. Industry executives, including Farley, argue that it will require fewer workers to produce electric vehicles due to the reduced number of moving parts. Therefore, the UAW is seeking to secure top wages to provide options for displaced workers, particularly those involved in the production of combustion engines and transmissions.
GM CEO Mary Barra, on the other hand, assured that there would be enough jobs for all as the industry transitions away from gasoline vehicles.
The automakers’ latest known wage offers amount to around a 20% increase over the four-year contract. This falls just above half of the amount demanded by the union. Other improvements, such as cost-of-living increases and a restoration of defined-benefit pensions for new hires, are also being addressed in the negotiations.
The UAW went on strike on September 15, immediately after the expiration of their contracts. Initially, the union targeted one assembly plant from each company and later added 38 parts distribution centers run by GM and Stellantis. Ford was exempt from the expansion at that time due to progressing negotiations.
The UAW’s strategic approach of targeting a limited number of facilities at all three automakers deviates from their traditional method of reaching a contract agreement with one company to serve as a pattern for the others.
Approximately 17% of the UAW’s 146,000 workers at the three automakers are currently on strike, allowing the union to preserve a strike fund worth $825 million before September 14.
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Koenig reported from Dallas. Associated Press Writer Joey Cappelletti in Lansing, Michigan, contributed to this report.