UAW: Stellantis Parts Distribution Facilities Called Upon To Strike

The United Auto Workers (UAW) announced significant progress in negotiations with Ford, aiming to reach a new labor agreement before the Friday deadline. UAW President Shawn Fain revealed key concessions secured in a Facebook livestream, including reinstating the cost-of-living adjustment (COLA) formula, enhanced profit sharing, the right to strike over plant closures, two years of income security and healthcare for laid-off workers (applicable to employees with at least 90 days of employment), and the conversion of temporary workers, among other provisions.

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Ford expressed its commitment to working closely with the UAW to create a mutually beneficial agreement. However, the company acknowledged that there were still substantial gaps in the negotiations, particularly on crucial economic matters, emphasizing the interconnected nature of these issues within an overarching agreement.

While progress was made with Ford, similar agreements were not reached with either General Motors (GM) or Stellantis, leading to additional strikes in other facilities. President Shawn Fain called for strikes at all GM and

starting at 12:00 p.m. EDT, affecting 38 locations across 20 states. Plants already on strike were to remain picketed.

The UAW had previously initiated simultaneous strikes at GM, Ford, and Stellantis assembly plants, with analysts predicting that any broader strike would include facilities producing highly profitable pickup trucks like Stellantis’s Ram 1500.

The strikes, which began on September 15th, involved approximately 12,700 workers in, Michigan, Missouri, and Ohio, impacting the production of Stellantis vehicles such as the Jeep® Wrangler (JL) and Jeep Gladiator (JT). 

The ongoing standoff raised concerns about extended industrial action potentially disrupting production, affecting supply chains, and having economic ramifications.

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In terms of specific demands, the automakers proposed 20% raises over 4.5 years, while the UAW sought a 40% increase and aimed to eliminate the tiered wage structure, which had created disparities between newer and more experienced employees.

Ford managed to secure a last-minute deal, avoiding a strike at its Canadian operations, following Unifor’s threat to strike all three Ford plants in the country, representing around 5,600 Canadian auto workers.

Sources: Reuters, CNBC, and UAW