United Auto Workers on strike as deals with US car giants collapse

By Al Mayadeen English
Source: The Guardian
15 Sep 2023 08:14

United Auto Workers union has failed to reach an agreement with the three largest car manufacturers in the United States: Ford, GM, and Stellantis.

Shawn Fain, the UAW president, with workers in Warren, Michigan in August. (AFP)

United Auto Workers have initiated a series of strikes following a failure by their union to reach an agreement with the three largest car manufacturers in the United States for a new contract, The Guardian reported.

The deadline for negotiations between Ford, General Motors, Stellantis, and the United Auto Workers (UAW) passed at midnight on Thursday, and there was still significant disagreement on the union's new contract priorities.

The strikes, which are the most extensive in a generation, are being organized by UAW president Shawn Fain. It is worth noting that Fain has announced plans to carry out a series of limited and targeted "standup" strikes, aiming to disrupt individual auto plants across the United States.

The UAW possesses an $825 million strike fund, which is designed to provide compensation of $500 per week to workers during the strike and has the potential to support all its members for approximately three months. By staggering the strikes, instead of having all 150,000 members walk out simultaneously, the union can make the most of these resources.

The union has put forth several demands, including a 40% wage increase, eliminating wage tiers that result in workers earning less than others, and restoring concessions made in previous deals. These concessions include reinstating medical benefits for retirees, providing more paid time off, and securing rights for workers distressed by plant closures.

Workers argue in favor of these demands by pointing to past concessions and the substantial profits of the three major automakers. Between 2013 and 2022, the automakers' profits surged by 92%, reaching a total of $250 billion. During the same stage, CEO salaries rose by 40%, and nearly $66 billion was distributed to shareholders in the form of stock dividends or stock buybacks. Additionally, substantial government incentives are on the horizon for the automotive sector as it shifts toward electric vehicles.

Despite these remarkable financial achievements, the real wages of employees have fallen by 19.3% when factoring in inflation since 2008.

In response to the strike, there are reports that the Biden administration is eyeing emergency aid for smaller supply companies that provide components to the automakers. Biden also had talks with UAW President Shawn Fain to tackle the status of the negotiations on Thursday.

During a livestream on Thursday night, Fain announced, “Tonight, for the first time in our history we will strike all three of the big three at once.” He made this statement less than two hours before the strike was scheduled to commence, emphasizing the significance of this moment for the union.

“This is our defining moment,” he added.

Three units will initiate the strike at midnight, comprising a General Motors facility in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford assembly plant in Wayne, Michigan. These strikes involve a total of 12,700 workers and are pivotal to the manufacturing of some of the most lucrative vehicles for the Detroit Three.

UAW President Shawn Fain stated that he would personally participate in the picket line at the Wayne plant when the strike officially began at midnight. He also indicated the possibility of expanding the strikes beyond the initial three targets, saying, “If we need to go all out, we will.”

The struggle over the contract has received substantial backing from the general public and the broader labor movement in the United States. Drivers who are members of the Teamsters union have committed not to cross the picket line, leading to a suspension of vehicle deliveries from the automakers during the strike. Numerous labor unions, as well as environmental, racial, and social justice organizations, have openly expressed their solidarity with the UAW in their quest for new contracts.