Auto workers expand strike to 38 locations in 20 states
The United Auto Workers union expanded its strike against major carmakers Friday, walking out of all 38 parts-distribution centers operated by General Motors and Jeep and Ram owner Stellantis in 20 states but sparing Ford from further shutdowns.
President Joe Biden said on X, formerly known as Twitter, that he will visit Michigan on Tuesday “to join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create.”
Ford avoided additional strikes because the company has met some of the union’s demands during negotiations over the past week, UAW President Shawn Fain said during an online presentation to union members.
“We’ve made some real progress at Ford,” Fain said. “We still have serious issues to work through, but we do want to recognize that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it’s a different story.”
Fain said GM and Stellantis, the successor to Fiat Chrysler, have rejected the union’s proposals for costof-living increases, profit sharing and job security, and “are going to need some serious pushing.”
GM said it has presented five “historic” offers covering wages and job security.
“Today’s strike escalation by the UAW’s top leadership is unnecessary,” the company said in a statement. “The UAW leadership is manipulating the bargaining process for their own personal agendas.”
Stellantis said it made “a very competitive offer” Thursday that would pay all current full-time hourly employees between $80,000 and $96,000 within four years and seven months, and allow “workforce stability” during that time. The company said the UAW has not responded.
Instead of targeting more production plants Friday, the UAW went after centers that distribute parts to car dealer service departments. That could quickly drag consumers into the middle of the fight, if dealers run short of parts.
The UAW said the new walkouts will affect 5,600 workers on top of the nearly 13,000 who began strikes last week at three Ford, GM and Stellantis assembly plants. Those original strikes will continue, the union said.
The UAW is continuing to avoid targeting plants that make Detroit’s bestsellers, such as the Ford
F-150 and Stellantis’ Ram pickups, which represent outsize shares of the companies’ revenue and profit. That represents a union strategy to gradually increase the pain of a strike on the automakers.
Deutsche Bank analysts estimated Friday that GM, Ford and Stellantis have lost production of more than 16,000 vehicles since the strike started last week at a Ford assembly plant near Detroit, a GM factory in Wentzville, Missouri, and a Jeep plant run by Stellantis in Toledo, Ohio.
Anderson Economic Group, a consulting firm in Michigan that tracks the industry, estimated Friday that the strike has caused about $1.6 billion in economic damage including more than $500 million for the companies and more than $100 million in wages lost to strikers and layoffs.
The carmakers and some of their suppliers have laid off about 6,000 workers in
moves they say are related to the strike. GM shut down a factory in Kansas that relies on parts stamped at the Wentzville plant.
Still, the impact is not yet being felt on car lots around the country — it will probably take a few weeks before the strike causes a significant shortage of new vehicles, according to analysts. Prices could rise sooner, however, if the prospect of a prolonged strike triggers panic buying.
In bargaining, the union is pointing to the carmakers’ huge recent profits and high CEO pay as it seeks wage increases of about 36% over four years. The companies have offered a little over half that amount.
“We aren’t getting paid what we are supposed to. I feel like our CEO is getting all our money,” said Antione Turner, who walked off his job Friday at a GM customer-care center in Belleville, Michigan.