Members of the United Auto Workers (UAW) are out on strike.
AUW members who are workers for the Detroit 3 automakers have gone on strike after it failed to reach a deal with the big three automakers in the state.
This strike is the first time the UAW has gone on strike since 2019, per Autoblog.
UAW Strike Details
The UAW and the big three Detroit automakers - Ford, General Motors, and Stellantis - are now at odds. According to a Business Insider report, the UAW's strike occurred after it didn't reach tentative agreements with the Big Three before the contract in effect at the time expired at 11:59 PM on Sept. 14.
CNBC reported that the key proposals the UAW made include:
- 40% hourly pay increases,
- a reduced 32-hour work week,
- a shift back to traditional pensions,
- the elimination of compensation tiers
- the restoration of cost-of-living adjustments
- enhanced retiree benefits, and
- enhanced vacation and family leave benefits, among other items on the table.
Unfortunately, both sides of the negotiating table didn't agree on such terms, even as President Joe Biden got involved. As such, the UAW announced it had started targeted strikes at three plants belonging to the Big Three.
Employees of HarperCollins Publisher participate in a one-day strike outside the publishing houses offices in Manhattan on July 20, 2022 in New York City.
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These plants, according to the UAW, are the following:
- GM Wentzville Assembly, Local 2250 in Region 4
- Stellantis Toledo Assembly Complex, Local 12 in Region 2B
- Ford Michigan Assembly Plant - Final Assembly and Paint, Local 900 in Region 1A
The UAW members in these plants have walked out and are conducting a "stand-up strike," which the union defines as "our generation's answer to the movement that built our union - the Sit-Down Strikes of 1937." UAW President Shawn Fain mentioned in a statement that this strike is the first time the UAW conducted against all three of the Big Three.
Fain and the UAW chose the plants to conduct its strike on well - GM's Wentzville Assembly plant builds the Chevy Colorado/GMC Canyon pickups and Express/Savana vans, according to Autoblog. Meanwhile, Stellantis' Toledo Assembly Complex builds its Jeep Gladiator, Wrangler, and Wrangler 4xe.
Lastly, Ford's Michigan Assembly Plant built its Ford Bronco and Ranger. These plants make the Big Three's popular and highly profitable models - the workers at these plants (12,700 in total) will be on strike.
This strike is only a warning shot to the Big Three; the UAW might call on workers at other plants to walk out as well. Whether these strikes are meant to scare the Big Three into a compromise or a strategy to stretch the union's strike fund remains to be seen.
regardless, the strike is sure to impact Big Three's customers, who will likely see a prolonged period with low vehicle inventory and few deals on car purchases in the foreseeable future.
The Big Three's Response
The Big Three, meanwhile, are not happy with the UAW's stance at the negotiating table. GM said in a statement that it had made "historic wage increases and manufacturing commitments" and offered an "unprecedented economic package" to reach a deal with it, per NBC News.
Ford, on the other hand, mentioned that it bargained in good faith with the UAW to avoid a strike and that it is committed to reaching an agreement that benefits the employee and itself.
However, the Big Three (and the UAW) believe that the other side didn't take the negotiations seriously, in good faith, and in a timely fashion. The automakers denied the accusations.
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