UAW announces new strikes at GM Ford plants spares Stellantis

UAW announces new strikes at GM, Ford plants, spares Stellantis, citing ‘dynamics’ in talks

  • The United Auto Workers union will expand strikes against General Motors and Ford Motor.
  • UAW President Shawn Fain said Chrysler parent company Stellantis was spared from further strikes because of recent progress in negotiations with that company.
  • About 6,900 auto workers will take part in the latest wave of walkouts, along with about 18,300 workers currently striking for the union.

DETROIT – The United Auto Workers union will expand strikes against General Motors and Ford Motor to two U.S. assembly plants at noon ET, UAW President Shawn Fain said Friday.

The additional strikes target Ford’s Chicago Assembly in Illinois, which makes the Ford Explorer and Lincoln Aviator SUVs, and GM’s Lansing Delta Township plant in central Michigan, which produces the Buick Enclave and Chevrolet Traverse crossovers.

The plants are important to the companies, but not as profitable or crucial as the facilities that produce the automakers’ pickup trucks.

Fain said Chrysler parent company Stellantis was spared from further strikes because of recent progress in negotiations with that company.

“Just moments before this transfer, Stellantis made significant progress on the 2009 cost of living allowance, the right not to cross a picket line, and the right to strike over product commitments, factory closures and outsourcing moratoriums,” Fain said in a delayed online announcement is almost 30 minutes. “We are excited about this momentum at Stellantis and hope it continues.”

About 6,900 auto workers will take part in the latest wave of walkouts, along with about 18,300 workers currently striking for the union. That means about 25,200 employees, or about 17% of UAW members covered by expired contracts with the Detroit automakers, will be on strike starting at noon.

“To restore the balance of power, we must restore the strike,” Fain said Friday, pointing to several other UAW strikes in addition to the Detroit automakers.

GM said in a statement Friday that it had not yet received a “comprehensive counteroffer” from union leadership to a contract proposal submitted last week.

“The call for more strikes is just for headlines and not for real progress. “The number of people negatively impacted by these strikes is growing and includes our customers who buy and love the products we make,” Gerald Johnson, head of global manufacturing at GM, said in the statement. “We are here to reach an agreement so we can all get back to work and that remains our 100% focus.”

Stellantis and Ford were not immediately available for comment.

The additional strikes come a week after a similar strike expansion. The UAW originally initiated work stoppages on September 15 at three assembly plants – one each for the Detroit automakers. Last week, the union targeted an additional 38 GM and Stellantis parts and distribution locations. At that time, the UAW spared Ford from widespread strikes, citing progress in those negotiations.

Members of the Writers Guild of America West (WGAW) join striking United Auto Workers (UAW) at a rally outside the Stellantis Mopar plant on September 26, 2023 in Ontario, California.

Gina Ferazzi | Los Angeles Times | Getty Images

Fain previously said the union would extend the work stoppages based on progress in contract negotiations. The talks have led to frustration and recriminations on both sides of the negotiating table.

Ahead of Friday’s announcement, GM and Stellantis in particular had become increasingly frustrated by Fain’s lack of involvement and alleged delays in receiving counterproposals from the union, people familiar with the negotiations told CNBC.

Unlike previous strikes, UAW leaders opted for targeted strikes against select plants rather than initiating nationwide strikes. The work stoppages are called “standing strikes,” a reference to historic UAW sit-down strikes in the 1930s.

The strategy is aimed at keeping automakers on their toes and pitting them against each other to win better contracts, according to private communications leaked last week involving the UAW’s communications director.

The news, which described a strategy intended to inflict “recurring reputational damage and operational chaos” on companies, drew strong criticism from automakers.