Detroit’s Three Automakers Face Strike as 13,000 Workers Demand Higher Wages and Benefits

About 13,000 U.S. auto workers went on strike after their leaders couldn’t reach an agreement with Detroit’s three automakers on higher wages and benefits. The strike, which is the first simultaneous walkout on all three companies in the union’s 88-year history, began at a General Motors assembly plant in Wentzville, Missouri, a Ford factory in Wayne, Michigan, and a Stellantis Jeep plant in Toledo, Ohio.

This strike comes at a critical time for the auto industry as it transitions from internal combustion automobiles to electric vehicles. The length of the strike could impact vehicle availability and prices. It could also be a factor in next year’s presidential election, testing President Joe Biden’s union-friendly stance.

The United Auto Workers union targeted specific factories to pressure the automakers to raise their offers. The union demanded 36% wage increases over four years, but GM and Ford offered 20% and Stellantis offered 17.5%. Workers are also seeking the return of pensions and cost-of-living increases.

The strikes are expected to preserve the union’s strike fund, which would run out in about 11 weeks if all workers walked out. However, more plants could be added to the strike if better offers are not made by the companies.

The strike will have an impact on the companies’ bottom lines, but the extent and duration are uncertain. Stellantis has the most inventory, followed by Ford and GM. Analysts predict that the strikes could last longer than previous ones due to the high stakes involved.

The automakers argue that they are facing unprecedented demands as they develop and produce electric vehicles while still manufacturing gas-powered vehicles. They are concerned that rising labor costs could lead to higher car prices compared to foreign automakers with U.S. factories.

Both sides remain at an impasse, with the union demanding significant increases in wages and benefits, and the companies arguing that they are offering historic wage increases and commitments to U.S. factories.

The outcome of these strikes will shape the future of the union and the U.S. auto industry as it navigates the transition to electric vehicles.