In a significant labor development, the United Auto Workers (UAW), representing nearly 150,000 autoworkers, launched a strike against the “Big 3” U.S. automakers: General Motors (GM), Ford, and Stellantis. This strike comes after both the UAW and the car manufacturers failed to reach a contract agreement by the union’s deadline, which was set for Thursday at 11:59 p.m. ET.
As negotiations came down to the wire, UAW President Shawn Fain announced the plants where union members would strike if a tentative agreement wasn’t reached on time. By midnight on Friday, approximately 12,700 union workers had gone on strike. These workers included those at GM in Wentzville, Missouri; Stellantis in Toledo, Ohio; and Ford’s Wayne, Michigan plant.
What’s unique about this strike is that it’s a “stand-up” strike, meaning that not all union members strike simultaneously. Instead, it unfolds progressively.
Shortly after the strike commenced, Fain sent a message to the UAW’s email list, emphasizing the significance of this moment:
“A few minutes ago, thousands of UAW members at Ford, GM, and Stellantis walked out, marking the beginning of the Stand Up Strike. This fight is our generation’s defining moment. Not just at the Big Three, but across the entire working class. We will stand up for ourselves. We will stand up for our families. We will stand up for our communities.”
In response to the strike, a Stellantis spokesperson expressed the company’s disappointment in not reaching an agreement:
“We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families, and our customers. We immediately put the Company in contingency mode and will take all the appropriate structural decisions to protect our North American operations and the Company.”
Key points of contention in the negotiations included wage increases and the length of the workweek. The UAW pushed for a substantial 46% pay increase over the four-year duration of a new contract, along with a reduction in the workweek from 40 to 32 hours while maintaining 40-hour pay.
In contrast, General Motors and Ford proposed offers that included a 20% pay increase over the agreement’s life, and Stellantis put forward a total 17.5% pay increase. All three companies preserved the 40-hour workweek.
As tensions mounted on Thursday, Ford Motor Company expressed its concerns about the UAW’s demands, stating that the union’s counterproposal showed little movement from their initial demands submitted in August. Ford emphasized its commitment to reaching an agreement that rewards employees and allows the company to invest in the future during a transformative period for the automotive industry.
The strike’s impact on the automotive industry and the ongoing negotiations will continue to be closely monitored as both parties seek resolution.
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