The United Automobile Workers (UAW) union has expanded its strike at General Motors (GM) and Stellantis, the parent company of Chrysler, Jeep, and Ram. The strike began on September 15 after workers’ contracts expired and is a “limited and targeted” work stoppage. Negotiators have been unable to reach an agreement on key issues, prompting the union to increase the labor action by including 38 parts distribution centers at GM and Stellantis. However, Ford has not been included in the expansion due to progress in talks.
The UAW must negotiate separate deals with each company, focusing on issues such as pay and retirement benefits.
The expansion of the strike means that approximately 18,300 UAW workers are on strike or will be soon. This includes 18 GM distribution centers employing 3,475 workers and 20 Stellantis centers with 2,150 UAW members.
What is the union seeking?
The UAW is seeking a 40% wage increase over four years, which they argue matches the raises received by top executives at the three companies during the same period. Additionally, the union wants cost-of-living adjustments, reinstatement of pensions for all workers, improved retiree benefits, shorter work hours, and an end to the tiered wage system that pays new hires significantly less than the top UAW pay of $32 per hour.
What have the companies offered?
At the start of the strike, the companies offered pay raises ranging from 14.5% to 20% over four years. They also proposed lump-sum payments to offset inflation effects and policy changes to increase the pay of recent hires and temporary workers. Stellantis had also proposed “job security” for 1,350 people who lost their positions at a plant in Belvidere, Illinois. However, the UAW rejected this proposal before the strike began.
UAW President Shawn Fain stated that the union has made progress with Ford, which is why they did not target any of Ford’s distribution centers. Ford agreed to cost-of-living adjustments for wages, the right to strike over plant closures, and benefits for laid-off workers. However, negotiations with GM and Stellantis have not seen significant progress.
What have the negotiators said publicly?
The companies argue that they are investing billions in the transition to battery-powered vehicles, making it harder to pay substantially higher wages. They also highlight the disadvantage compared to nonunion automakers like Tesla. UAW President Shawn Fain has consistently stated that the union will not settle for less than the 40% wage increases.
During an interview, Fain mentioned that if better offers are not received and members’ needs are not met, the strike will be escalated further.
What will striking workers get paid?
The UAW is providing striking workers with $500 per week and covering their health insurance premiums. The union’s strike fund of $825 million can cover payments to workers for approximately three months if there is a full strike against all three companies.
What does the strike mean for consumers?
Currently, only certain car models are affected by the strike. However, if the strike continues and begins to impact inventories, car dealers may have fewer vehicles available and may raise prices accordingly. This could further exacerbate the already rising car prices and interest rates on auto loans, making it more difficult for buyers to afford cars. Additionally, the strikes at distribution centers may also impact vehicle repairs for models made by GM or Stellantis.
Contributions to this report by Daniel Victor and Jack Ewing.
**Focus Keyword: United Auto Workers Expansion of Strikes at Automakers**
