UAW Strikes Continue with High-Stakes Strategy, Automakers on Edge

The United Auto Workers (UAW) are entering the 19th day of strikes with a bold strategy that has put the Detroit Three automakers in a high-stakes game. UAW President Shawn Fain has transformed the contract negotiations with General Motors (GM), Ford, and Stellantis into a made-for-media spectacle, reminiscent of the popular TV show “Survivor.”

The UAW’s strategy involves a weekly decision on which factories to strike next, keeping the automakers guessing and creating confusion. While there is pain on both sides, the union appears to be in control for now. However, the strikes have led to layoffs, hurting suppliers, and impacting the financials of the automakers.

Analysts estimate that GM has lost $191 million and Ford $145 million in operating profit during the third quarter due to the strikes. Despite these losses, the automakers’ combined pre-tax profits for the year are still expected to be substantial, reaching up to $26 billion.

The UAW’s power lies in its ability to escalate the strikes and target factories that produce popular vehicles like Ford, Chevrolet, and Ram pickup trucks, as well as GM’s Cadillac Escalade. However, reaching these factories could take weeks at the current pace.

The UAW’s strategy of launching limited strikes at all three automakers simultaneously has proven effective. The automakers must make new concessions to avoid wider walkouts and further revenue losses. The negotiations are evaluated weekly, and failure to meet union demands could result in additional plants going on strike.

The CEOs of GM and Ford have accused UAW President Shawn Fain of misrepresenting the state of bargaining and spending too much time in the media instead of at the bargaining table. They argue that the UAW’s strategy ultimately benefits non-union competition and puts union jobs at risk.

One of the key issues in the negotiations is the UAW’s concern over lower wages at the automakers’ joint venture battery plants. The union aims to prevent non-union, lower-paid battery plant jobs from replacing UAW-represented combustion powertrain jobs.

The next steps and timeline for the negotiations remain unclear, as the UAW deliberately keeps the automakers guessing. New bargaining sessions are underway, and the automakers will likely seek details of the tentative deal the union reached with Mack Trucks, which could significantly impact wages for thousands of UAW members.

As the UAW’s strategy continues to unfold, the automakers are on edge, facing mounting costs and uncertainty. The outcome of these negotiations will have far-reaching implications for the industry and the future of unionized labor in the automotive sector.