Detroit automakers and the United Automobile Workers continued to negotiate Saturday, company officials said, a day after the union expanded strikes in a way that could limit parts supplies for vehicles made by General Motors and Stellantis, the owner of Jeep and Ram.
UAW members quit their jobs at GM and Stellantis parts distribution centers on Friday but spared Ford, saying the company had done more to meet its demands.
“Our pressure on Ford is beginning to pay off,” the UAW told its members Saturday.
While there are no signs that an agreement with Ford is imminent, an agreement with the company could put pressure on the other two companies to offer similar terms and lead to a quick end to the strike, analysts said.
“The moment you get a deal with Ford that includes much or all of what the UAW is looking for, that puts a lot of pressure on GM and Stellantis,” said Michael Duff, a professor at Saint Louis University School of Law and a former attorney for the National Labor Relations Board. “You put them in the position of having to argue why they are different, why they can’t give anything more.”
A short strike would be good news for the economy. About 200,000 people work in auto manufacturing, according to the Alliance for Automotive Innovation, an industry group. This number does not take into account jobs that are indirectly dependent on automobile manufacturing and is many times higher.
Lost wages would hit consumer spending, while inflation could rise if some vehicles become difficult to obtain or repair shops and dealers run out of parts. If so, the Federal Reserve would have to continue its efforts to slow the economy by keeping official interest rates high. More than 18,000 UAW members are currently on strike.
The car companies are also under pressure from public opinion. Autoworkers’ argument that their wages have not kept up with inflation while automakers reported healthy profits is resonating with the public, said Ivana Delevska, founder of Spear Invest, an investment firm.
“Inflation has risen across the board. They have to support themselves,” Ms. Delevska said of the workers.
Polls show that workers have public opinion on their side, but that could change if a long strike makes it difficult for people to repair their cars or is perceived as damaging to the economy, Duff said. “If the strike drags on, there may be disillusionment among workers,” he said.
Stellantis workers walked out of 20 of the company’s parts distribution centers on Friday, while GM workers went on strike at 18 centers.
An agreement Ford reached last week with the union representing its Canadian workers could provide clues to the outcome in the United States. The deal with Unifor includes salary increases of up to 25 percent over the three years of the contract, as well as bonuses, enhanced pension benefits and measures to protect employees as Ford converts factories to electric vehicles.
Unifor, which likely has less influence than the UAW because Ford has a much smaller presence in Canada, has made these gains without having to exit. The union is negotiating separately with GM and Stellantis in Canada.
Investors expect America’s automakers and unions to agree on a wage increase of less than 30 percent, Ms. Delevska said, adding that both sides have an incentive to agree quickly. “It’s in no one’s interest for this to take any longer,” she said.
The UAW’s demands include a 40 percent wage increase over four years, improved pension benefits and shorter work hours. The union also wants an end to a tiered wage system that requires new hires to be paid far lower than the UAW’s top wage of $32 an hour.
According to the union, Ford agreed to some of the UAW’s demands, such as promising to adjust workers’ wages to inflation and increase their profit-sharing bonuses.
Ford also agreed to give workers the right to strike over plant closures, a key concession. The union fears automakers will close some factories as the industry shifts to electric vehicles, which require fewer parts and labor.
“These are historic achievements,” the UAW said in a message to members Saturday, “but we must go further.”