Auto workers want bigger slice, could go on strike

DEARBORN, Mich. — Contract talks between the United Auto Workers and Detroit’s three automakers kicked off with the union president departing from the traditionally friendly tone by telling Ford executives that workers want a bigger share of the companies’ record profits.

While Ford executives talked often about working together at a ceremony Monday, UAW President Gary Jones emphasized that he wants to end concessions and the companies’ outsourcing of jobs to countries with lowercost labor.

“We will protect our work, our jobs and our way of life,” Jones said. “We expect an agreement that recognizes our contributions.”

Bargaining over new fouryear contracts between the Detroit automakers and the union representing 142,000 workers nationwide started Monday with a ceremonial handshake at Ford’s Dearborn, Mich., headquarters.

The two sides have been at relative peace during recent good times, but that could change as auto sales and profits begin to slow, health care costs rise and a labor cost gap widens with workers at foreignowned assembly plants in the South.

Talks with General Motors and Fiat Chrysler will begin on Tuesday. The union’s fouryear contract with all three expires Sept. 14.

Here are some key things to know heading into the negotiations: Could the union go on strike?

Yes. At a bargaining convention in March, Jones told delegates that the union is raising strike pay and said it would walk out if necessary. The UAW also has been opposed to GM’s plans to close factories, including large assembly plants in the Detroit area and in Lordstown, Ohio. On Monday, Jones said members will do “whatever is necessary” to get a contract they deserve. A strike is unlikely before the contracts expire. What happens if there is a strike?

It depends on how long it lasts and how widespread it is, but a targeted company would quickly run out of parts and couldn’t build vehicles. Consumers would see fewer cars and trucks on dealer lots, and they wouldn’t be able to special order vehicles. Companies and workers would lose money. What are the issues?

Companies are looking to trim hourly labor costs, which have grown when compared with Southern U.S. factories run by Toyota, Nissan, HyundaiKia, Volkswagen and others. Fiat Chrysler pays about $55 per hour in wages and benefits to UAW workers, while it’s $61 at Ford and $63 at GM. That compares with an average of $50 per hour at plants owned by foreignbased automakers, according to the Center for Automotive Research, an industry think tank.

Still, the Detroit Three keep making big money. Together they posted over $15 billion in net profits last year. Workers also would like to shift more of their pay from profit sharing, which can fall in a downturn, to hourly raises.