UAW, automakers resume bargaining as Ford and GM reduce

Home > Industry Analysis > Content

【Summary】The United Auto Workers (UAW) plans to resume bargaining on Saturday after launching strikes at three factories owned by General Motors, Ford Motor, and Chrysler parent Stellantis. The strikes are halting production of popular models, but they are smaller than expected. The UAW is demanding a bigger share of profits, shorter work weeks, and stronger job security as automakers shift to electric vehicles.

FutureCar Staff Sep 16, 2023 9:19 AM PT

UAW, automakers resume bargaining as Ford and GM reduce

The United Auto Workers (UAW) plans to resume bargaining on Saturday following simultaneous strikes at three factories owned by General Motors, Ford Motor, and Chrysler parent Stellantis in Detroit. The strikes involve 12,700 workers and have halted production of popular models such as the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado.

The ripple effects of the strike have already begun to spread, with Ford telling 600 non-striking workers not to come to work and GM warning that a Kansas car plant may be shut down next week due to a lack of parts caused by a nearby struck plant. UAW President Shawn Fain stated that the goal is not to wreck the economy, but rather to address issues with the billionaire economy.

The strikes come after weeks of clashes between the union and Detroit Three executives over demands for a bigger share of profits, shorter work weeks, restoration of pensions, and stronger job security. The previous contract expired on Thursday, and while Fain stated that more costly company-wide strikes are not planned for now, all options remain open.

President Joe Biden called for the auto companies to reward workers and emphasized the need for fair contracts. Dozens of workers picketed at Ford's Michigan assembly plant, expressing their concerns about changes to their contracts and work rules over the years.

The automakers have not proposed eliminating the tiered wage systems, but they have offered to reduce the time needed to reach top pay. However, the union demands have been met with concerns from executives who believe they would make the companies uncompetitive against nonunion rivals.

While the strike was smaller than expected, workers in Michigan supported the plan, hoping to have a greater impact by keeping other plants open. The targeted walkouts could limit the cost of strike pay to the UAW, which has a substantial strike fund.

The UAW is seeking a 40% raise, while the automakers have offered up to 20% without key benefits demanded by the union. The automakers argue that the demands would create an unsustainable financial situation and leave them vulnerable to future losses.

As the shift to electric vehicles threatens combustion powertrain jobs, there is a concern about the impact on employment. President Biden has been investing in expanding electric vehicle sales, while former President Donald Trump criticized the move as a job-killer for the UAW.