Title: UAW Workers Extend Strike as Auto CEOs Trade Accusations
Subtitle: Simultaneous strike expands to new plants in Chicago and Lansing, escalating tensions between United Auto Workers (UAW) and Detroit’s Big Three automakers.
Date: September 29, 2023
In a new development, approximately 25,000 United Auto Workers (UAW) initiated an extension of the ongoing strike that has now entered its third week. The expansion of the strike saw workers walking off the job at Ford’s Chicago assembly plant and General Motors’ Lansing assembly plant in Michigan. Notably, Stellantis was spared after making last-minute concessions.
The verbal sparring between UAW leaders and the CEOs of General Motors and Ford escalated following the decision to expand the strike. General Motors CEO Mary Barra accused the UAW of lacking genuine intent to reach an agreement. Meanwhile, Ford CEO Jim Farley accused the union of holding a deal hostage over a dispute regarding future electric vehicle battery plants. The UAW responded on social media, pointing out the CEOs’ high salaries.
The statements from the CEOs and UAW chief Shawn Fain highlighted the growing frustration and the apparent lack of progress in the negotiations. Farley claimed that the UAW’s demands could have a devastating impact on Ford’s business, specifically mentioning wages and benefits at upcoming electric vehicle battery plants. Fain defended the UAW’s position, accusing Farley of not participating in bargaining sessions for most of the past 10 weeks.
Despite the escalating tensions, the UAW and the automaker companies remain far apart on key economic issues. Fain maintains the demand for a 40% pay hike over a four-year contract, a stance that received support from President Joe Biden this week. In contrast, the companies have offered pay hikes of around 20%.
Barra accused Fain of dragging workers into a prolonged and unnecessary strike, claiming that she would not jeopardize the company’s future. The UAW opted for a deliberate approach to the strike, choosing to walk out of only two additional assembly plants instead of staging a mass walkout at the most profitable plants that manufacture pickup trucks.
The UAW’s striking workforce now stands at approximately 25,000, which represents around 17% of the union’s three automaker members. The union strategically expanded the walkouts in recent weeks, using them as leverage against each automaker. The walkouts at Ford’s Chicago assembly plant and GM’s Lansing plant affected the production of popular SUV models.
The strike is not without its financial implications. The UAW has estimated that the strike costs them $500 per worker per week. With the additional 7,000 workers that walked off the job, the strike fund is being strained by over $12 million each week.
In a bid to maintain the limited strike fund, the UAW is cautious about the expansion of strikes at Mack Trucks facilities and Detroit-area casinos, also represented by the union. Additionally, the strike at a plant that produces axles for Mercedes-Benz’s Alabama factory remains ongoing.
As negotiations continue between the UAW and the companies, it is clear that significant differences still exist. The battle for a favorable agreement rages on, and both sides remain determined to fight for their respective demands.