UAW, automakers to resume negotiations Saturday, as Ford and GM reduce

author: FutureCar Staff    

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 walkouts by 12,700 workers are halting production of popular models like the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado. The strikes are smaller than expected but have already started to have ripple effects, with Ford telling non-striking workers not to come to work and GM warning of potential shutdowns due to a lack of parts.

The UAW President, Shawn Fain, emphasized that the goal of the strikes is not to wreck the economy but to challenge the billionaire economy. These strikes come after weeks of clashes between the union and Detroit Three executives over demands for a bigger share of profits, shorter work weeks, restored pensions, and stronger job security as automakers shift to electric vehicles. The previous contract expired on Thursday, and while more costly company-wide strikes are not planned for now, all options remain open.

President Joe Biden, facing re-election next year, called on the auto companies to reward workers as executives' salaries rise. He stated that he respects the workers' right to strike and believes that the companies should go further in ensuring that record profits result in record contracts. Meanwhile, workers picketed at Ford's Michigan assembly plant, expressing their grievances over changes to their contracts and work rules that have negatively affected them over the past 15 years.

The Detroit Three automakers have not proposed eliminating the tiered wage systems, which is a key demand of the UAW. However, they have offered to reduce the time needed for employees to reach top pay. The union's demands have been met with concerns from executives who argue that they would make the automakers uncompetitive against nonunion rivals. GM CEO Mary Barra and Ford CEO Jim Farley both expressed that there is still a long way to go in negotiations.

The strikes are taking place at assembly plants operated by GM in Missouri, Ford in Michigan, and Stellantis' Jeep brand in Ohio. Although the walkout was smaller than expected, workers in Michigan support the plan, believing that it will have a greater impact on the companies. Targeted walkouts could limit the cost of strike pay to the UAW, which has a significant strike fund. The automakers have also built up substantial profits from the vehicles built by UAW members.

President Biden has dispatched Labor Secretary Julie Su and adviser Gene Sperling to offer support for the talks but stated that they will not intervene or mediate. The UAW's demand for a 40% raise has not received explicit support from Biden, and the automakers have argued that it would create an unsustainable financial situation. Ford, in particular, has stated that the UAW's proposals would make it uncompetitive against nonunion rivals like Tesla.

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

FutureCar Staff