UAW Expands Strike Efforts, Spares Stellantis Production

The United Auto Workers (UAW) strike against the Detroit Big-3 automakers enters its third week, with an expansion of General Motors and Ford walkouts. UAW President Shawn Fain announced the addition of Ford’s Chicago assembly plant and GM’s Lansing, Delta Township, Michigan, assembly plant, encompassing approximately 7,000 workers. This brings the total number of workers on strike to 25,000. Notably, the strike will not include any additional members at Stellantis.

Fain expressed frustration with the lack of progress in negotiations, stating, “Despite our willingness to bargain, Ford and GM have refused to make meaningful progress.” He highlighted a surge of interest from the companies just before the announcement. Talks with Stellantis, however, took an unexpected turn as significant changes were made to their contract proposal, prompting a pause in announcing a new strike.

Negotiations with all three companies are still ongoing, and Fain remains hopeful for a resolution. The UAW’s key demands include higher wages, improved benefits, and the removal of a tiered pay structure that disadvantages newer workers. Automakers argue that these demands could impact their profitability, especially in the face of competition from nonunion manufacturers like Tesla.

The UAW’s strategic approach to the strike involves applying pressure incrementally rather than through a mass walkout. This method has kept company executives uncertain about where the next turn would come. While the strike’s impact has been limited compared to halting assembly lines, analysts estimate that GM, Ford, and Stellantis earn up to $15,000 per vehicle on their respective large pickup truck models.

The standoff between the UAW and the automakers centers on key economic issues. Fain stands firm on a demand for 40% pay increases over a four-year contract, supported by President Joe Biden. In contrast, the companies have proposed raises of approximately 20%. Additionally, the UAW is pushing for the elimination of the two-tier wage system, which allows new hires to earn significantly less than veteran workers.

As the strike continues, all eyes are now on the evolving negotiations with Stellantis.