United Auto Workers Expand Strike at GM and Ford Plants, Spare Stellantis

The United Auto Workers (UAW) union has announced the expansion of its strike to include additional plants at General Motors (GM) and Ford, while sparing Stellantis after last-minute concessions. This marks the first-ever simultaneous strike against the Detroit Three automakers, which has now entered its third week.

The UAW strategically decided to play the companies against each other, using reprieves from expanding work stoppages as encouragement during negotiations. The expanded strike has now encompassed Ford’s Chicago assembly plant and GM’s Lansing, Michigan, assembly plant, affecting approximately 7,000 workers. With this expansion, a total of 25,000 workers, or about 17% of the union’s 146,000 members at the three automakers, are now on strike.

Notably, the UAW has shown restraint by avoiding pick-up trucks, which are Detroit’s biggest profit-makers. Despite the ongoing negotiations, UAW President Shawn Fain expressed disappointment in the lack of meaningful progress from Ford and GM. However, he noted a recent surge of interest from the companies on Friday morning.

Stellantis, the parent company of Chrysler, made significant changes to its proposal just moments before Fain’s announcement, leading to a half-hour delay and sparing them from escalation. Fain cited progress with Stellantis regarding cost of living allowance payments, as well as the right to strike over product commitments and plant closures.

While talks continue at all three companies, the UAW’s demands for higher wages, benefits, and the elimination of a two-tier wage system remain a point of contention. Automakers argue that these demands would negatively impact profits as they compete with nonunion manufacturers like Tesla.

The strike, which began on September 15, has had a relatively limited effect on the automakers compared to the potential financial impact of halting assembly lines for trucks. Analysts estimate that GM, Ford, and Stellantis earn as much as $15,000 per vehicle on their large pickup trucks, which have not been affected by the strike.

The UAW’s expanded strike aims to put pressure on GM and Ford without causing significant disruption to production. The union has a strike fund of $825 million and is also facing potential strikes at Mack Trucks and three Detroit casinos. Striking workers currently receive $500 a week from the strike fund.

As negotiations continue, the UAW and the companies remain far apart on key economic issues. Fain has maintained a demand for 40% pay hikes over a four-year contract, a position that has received support from President Joe Biden. In contrast, the companies have offered pay hikes of approximately 20%.

The UAW strike is part of a broader trend of increased union activism in the United States. Prior to the strike, 310,000 U.S. workers were involved in work stoppages through August, indicating a potential increase in strikes compared to previous years.

Overall, the ongoing strike by the UAW highlights the union’s determination to secure better wages and benefits for its members, while the automakers strive to balance profitability and competition in the industry.