[1/3]UAW President Shawn Fain chairs the collective bargaining convention for the 2023 special election in Detroit, Michigan, U.S., March 27, 2023. Portal/Rebecca Cook/File Photo acquire LICENSE rights
Sept 13 (Portal) – United Auto Workers (UAW) President Shawn Fain said on Wednesday the union was preparing for a strike against the Detroit Three automakers, a day before four-year collective bargaining agreements expire on Thursday evening.
Fain said the Detroit Three automakers offered raises of up to 20% over four and a half years, but called the increases inadequate.
Coordinated strikes would be the first simultaneous work stoppage at all three Detroit automakers and one of the largest industrial actions in U.S. industry in recent years.
“We are making progress, but we are still very far apart on our key priorities,” Fain said in a Facebook Live address.
Ford Motor (FN) has proposed a 20% wage increase, General Motors 18% (GM.N) and Chrysler parent Stellantis (STLAM.MI) 17.5%, Fain said. That’s less than half of the 40 percent wage increases the union has sought — including an immediate 20 percent increase upon ratification of a contract and a 5 percent annual increase.
Fain outlined a strategy to “cause confusion” among the Detroit Three automakers and stage a series of strikes against individual U.S. plants if an agreement is not reached.
Portal reported late Tuesday that the union could opt for a strike at select auto plants if they fail to secure new contracts for 146,000 U.S. auto workers.
A UAW strike that would result in the closure of the Detroit Three manufacturers could cost automakers, suppliers and workers more than $5 billion, the Michigan-based Anderson Economic Group estimated, and could lead to disruption of the broader auto supplier network lead.
Stellantis confirmed on Wednesday that it had made a third offer.
“We are awaiting your response to this latest offer,” the company said in an email to employees. “Our focus remains on negotiating in good faith to have a tentative agreement on the table before tomorrow’s deadline.”
Stellantis said last week it had offered U.S. hourly workers a 14.5% wage increase over four years, while GM had offered workers a 10% wage increase and two additional annual lump sum payments of 3% over four years. Stellantis did not offer additional lump sum payments last week.
US President Joe Biden has “encouraged the parties to stay at the negotiating table and work around the clock on a win-win agreement that keeps UAW workers at the heart of our automotive future,” said White House economic adviser Jared Bernstein , on Wednesday.
Biden called top executives from all three automakers last week to “encourage them to make more forward-looking offers to stay at the negotiating table,” Bernstein added.
AFL-CIO President Liz Shuler told Portal that autoworkers don’t want to go on strike, “but they will if they have to to reach a fair deal.”
Shuler noted that there have been over 200 strikes in the United States this year. “That’s because the economy is broken. The workers are fed up,” she said.
Sources said the UAW and GM met Wednesday for a new round of negotiations.
Rally planned in Detroit
The UAW said it is planning a rally in Detroit on Friday that will include Fain, Sen. Bernie Sanders and other members of Congress, coinciding with the first day of strikes.
The UAW is considering initially shutting down only certain plants at the three automakers in Detroit, two sources briefed on the matter said, adding that the strike plan could change.
Targeting strategic plants could quickly force automakers to halt production in the U.S. and extend the time until the UAW’s $825 million strike fund is exhausted.
The UAW initially sought a 20% wage increase after ratification and four annual 5% raises, but had offered to cut those increases to a total of around 36%, three sources told Portal. Fain said the union is still seeking a total 40% raise. “We were at 40% — that’s our demand,” Fain told CNBC.
Last week, Ford increased its offer to a 10% wage increase and flat payments, after offering a 9% wage increase through 2027 and flat payments of 6%.
The union’s demands include the restoration of defined benefit pensions for all workers, 32-hour weeks and additional cost of living increases, as well as job security guarantees and an end to the use of temporary workers.
Reporting by David Shepardson; Editing by Christina Fincher, Nick Zieminski and Deepa Babington
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