The United Auto Workers union on Friday expanded its strike against two major U.S. automakers, General Motors Co. and Ford Motor Co., as negotiators remain divided on key issues two weeks after the strike began. .
The strike was not a full-fledged strike by the union’s roughly 150,000 members, but a “limited and targeted” strike that began on September 15, after the workers’ four-year contracts expired. On Friday, unions stepped up their labor action to include two assembly plants, GM and Ford, but not Stellantis, the parent company of Chrysler, Jeep and Ram, because of progress in negotiations.
Unions must negotiate separate agreements with each company on issues such as pay and severance benefits.
Why was the strike extended?
Mr Fein had warned that the strike would escalate “if significant progress is not made”. He said Friday that negotiations between GM and Ford have not made much progress and called on workers at a Ford plant in Chicago and a GM plant in Lansing, Michigan, to leave.
About 4,600 UAW members are employed at Ford’s Chicago plant, and 2,300 members work at GM’s Lansing plant. More than 25,000 UAW union members at three companies have been asked to stop working, including workers who previously retired.
A week ago, workers went on strike at 38 spare parts distribution centers owned by GM and Stellantis. The UAW said it did not expand its strike against Ford because the union had made significant progress in contract negotiations with the company at the time.
What do unions want?
The UAW is demanding a 40% pay increase over four years, an amount that union officials say is comparable to the raises that executives at the three companies have received over the past four years. These raises are also intended to make up for the more modest increases autoworkers have received in recent years and concessions unions made to companies after the 2008 financial crisis.
The union is also calling for cost-of-living adjustments that would raise wages to compensate for inflation. It also calls for restoring pensions for all workers, improving retiree benefits, shortening work hours, and phasing in new hires to start paying far less than the UAW’s maximum wage of $32 an hour. They are also calling for the abolition of the wage system.
What did the company offer?
When the strike began, companies were proposing wage increases of about 14.5% to 20% over four years. Their proposals include lump sum payments to offset the effects of inflation and policy changes to increase pay for new hires and temporary workers, who typically earn about one-third less than veteran union members. It is.
Stellantis said on Friday that progress had been made in negotiations but “rifts remain”. The company said it has “worked diligently with the UAW to find solutions to the issues that our employees are most concerned about, while keeping the company competitive.”
Ford and the union reached an agreement on several other demands, including cost-of-living adjustments if inflation spikes again and the right to strike if factories close.
GM executives told employees Friday that they are waiting for a “comprehensive counteroffer” to the company’s Sept. 21 proposal.
What are negotiators saying publicly?
Both companies say they are investing billions of dollars in the transition to battery-powered vehicles, making it difficult to pay significantly higher wages. They say they are at a disadvantage compared to non-union automakers like Tesla, which has a monopoly on electric car sales.
Mr Fein has consistently said the union will not settle for a wage increase of less than 40%.
“If we don’t get a better offer and we don’t commit to meeting the needs of our members, we’re going to step up our efforts,” Fain said in an interview with CBS’ “Faith.” nation. ”
What kind of pay will striking workers receive?
The union pays striking workers $500 a week and covers their health insurance premiums. The union’s $825 million strike fund is large enough to pay workers during a roughly three-month all-out strike at all three companies, but the UAW will only take a cease-and-desist action if negotiations reach an impasse. It is expected to expand.
What does the strike mean for consumers?
For now, only certain models of cars are affected, but if the strike lasts longer and starts to affect inventory, car dealers will have fewer cars on their premises and will be forced to raise prices for the cars they do have. It is possible to start.
This happened at a time when car prices were already rising and average interest rates on car loans were also rising, making it harder for buyers to afford cars.
A growing strike at distribution centers that supply repair parts to dealerships could also affect people who need repairs if their cars are made by GM or Stellantis.
Daniel Victor and jack ewing Contributed to the report.