UAW Strike Widens to More Plants, but Ford Negotiations Show Progress

The United Automobile Workers (UAW) union has intensified its pressure on General Motors (GM) and Stellantis, the parent company of Jeep and Ram, by extending its strike to include all spare parts distribution centers at these companies. The strike will involve workers from 38 distribution centers, who will walk off the job at noon. UAW President Shawn Fain stated that negotiations with both companies have not made substantial progress, in contrast to Ford Motor, which has shown more willingness to meet the union’s demands. Fain emphasized that the parts distribution centers will remain shut down until GM and Stellantis come to the bargaining table.

Acknowledging the progress made in talks with Ford, the union has decided not to strike additional facilities at the company.

Fain clarified that despite this progress, there are still significant issues to address in negotiations with Ford. The tensions between the union and the automakers escalated when private messages from a UAW communications manager seemed to imply satisfaction with the strike’s impact on the manufacturers. These messages were leaked and revealed in The Detroit News. GM responded by accusing the UAW of showing “callous disregard” for the seriousness of the strike and stated that the union’s intention was to cause months-long disruption regardless of the harm to its members and communities.

The expansion of the strike raises the stakes for both sides involved and could potentially lead to other plants owned by the automakers and their suppliers halting production. The UAW is providing striking workers with $500 per week from its $825 million strike fund, while the manufacturers face significant daily revenue losses as long as the affected plants remain idle.

Last week, the union called for strikes at a GM pickup truck plant in Wentzville, Missouri, a Ford factory in Michigan producing the Bronco sport-utility vehicle, and a Jeep plant in Toledo, Ohio, owned by Stellantis.

The UAW is seeking substantial wage increases, pointing out the automakers’ strong profits over the past decade and the corresponding raises given to chief executives. Initially demanding a 40 percent increase, the union has been offered approximately 20 percent over four years by the companies.

In addition to improved wages, the UAW also aims to expand pension eligibility, secure company-paid retiree healthcare, reduce working hours, and ensure job security for workers in the event of plant closures. The union also wants to eliminate the wage system that starts new hires at around $17 per hour, with a requirement of eight years to reach the top wage of $32 per hour.

Peter Berg, a professor of employment relations at Michigan State University, explained that the UAW’s strategy of targeting specific locations eases the cost of supporting workers from their strike fund but negatively impacts the manufacturers, as these plants produce some of their most profitable vehicles. The question remains whether the union can maintain solidarity if the strike continues for several more weeks.

Meanwhile, workers at Stellantis’s North American headquarters in Auburn Hills, Michigan, expressed readiness to join the strike if called upon.

This is a developing story. Stay tuned for updates.