An unprecedented strike among the three largest American automakers began in the United States on Friday, to which President Joe Biden responded with a request for a “fair” distribution of their “record profits.”
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“Companies have made important proposals, but I think they should go further with employees,” Joe Biden said Friday during a brief speech at the White House.
Negotiations between the powerful American automobile union United Auto Workers (UAW) and the three major manufacturers, particularly over wage increases, have failed.
The UAW therefore made good on its threat and launched an unprecedented simultaneous strike on the night of Thursday to Friday among the “Big Three” of American manufacturers: General Motors (GM), Ford and Stellantis (born from the merger the French PSA and the American Chrysler).
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“Today we bring our members together. We will be at the negotiating table tomorrow,” UAW President Shawn Fain said in a statement Friday afternoon, saying all three groups have now received a “full counteroffer.”
Joe Biden, who is seeking a second term in the White House in 2024, regularly shows his support for unions across all sectors.
“Nobody wants a strike,” he said, while still assuring that he understood “the frustration of the workers,” who “deserve a fair share of the benefits they have created.”
In the first half of 2023, the three manufacturers generated cumulative sales of $276 billion and net profits of $20.25 billion.
Worries
The strike began Friday at three assembly plants: the Ford plant in Wayne in the Detroit area, Michigan, the GM plant in Wentzville, central Missouri, and the Stellantis plant in Toledo, northern Ohio. According to the union, around 12,700 employees were expected to leave the company on Friday.
“I think the strike will last at least a month or two,” Sofus Nielson, a Ford employee for 29 years, including fifteen at the Wayne plant, told AFP on Friday, saying he was “worried about the young workers.” » who have lower salary levels and social benefits.
Getty Images via AFP
For Jillian Gray, who has been working at the same location for 16 years, “it was high time. We need this to follow the economy, (…) to be able to buy what we produce.
The movement could spread. Shawn Fain ordered the approximately 146,000 members of his organization who work for these manufacturers to be ready to strike depending on the outcome of the negotiations.
The last strike in the industry dates back to 2019 and only affected GM for six weeks.
Despite his union support, Joe Biden could be punished by ongoing or widening social conflict that could actually weigh on growth. His economic record is already regularly criticized by Republicans, particularly because of stubborn inflation.
According to consulting firm Anderson Economic Group (AEG), whose clients include Ford and GM, a 10-day strike by all UAW union members could cost the economy more than $5 billion in lost revenue.
Increase by 40%
Negotiations to draw up new collective agreements for four years began two months ago.
The UAW is demanding a wage increase of about 40% over four years, while the three manufacturers have reached a maximum of 20%, according to the union.
AFP
The giants have also notably refused to grant additional vacation days and increase pensions provided from company-specific funds.
In a statement, Ford said it was “absolutely committed to reaching an agreement that rewards employees and protects Ford’s ability to invest in the future.”
He called the offer made to the union days earlier “historically generous with significant wage increases” and other benefits.
In an interview on CNN on Friday, GM CEO Mary Barra defended manufacturers’ proposals, which include “not only a 20 percent increase in gross pay, but also profit sharing, premium health insurance and several other features.”
Stellantis said it was “extremely disappointed by the UAW leadership’s refusal to responsibly advocate for a fair settlement in the best interests of our employees, their families and our customers.”
For Garrett Nelson, CFRA analyst, companies are “full of liquidity and (…) can likely withstand a strike longer than employees.”