The players, possibilities surrounding strike talk
Non-union staff, others could feel pinch of work stoppage
A potential UAW strike would affect not only the 150,000 or so union-represented autoworkers at the Detroit Three but also the many supplier companies and their employees as well as non-union staff at the three companies and the many other businesses that cater to and rely on the industry.
Here are a few answers to some questions you might have:
Who is involved?
The United Auto Workers union represents the autoworkers and has contracts with Ford, General Motors and Stellantis, a company formed from a merger in 2021. It owns Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati as well as other brands sold outside the United States.
Why would a strike happen this week?
The current four-year contracts were in effect until 11:59 p.m. Thursday. Union President Shawn Fain has said any of the companies without an agreement by that time would face a strike. Talks opened in July. In a Facebook Live session Wednesday, Fain said the sides are still far apart.
What is a stand-up strike?
That’s a reference to the strategic plan that the union is said to have for a strike targeting certain plants at the different automakers in waves. It would be designed to be unpredictable. The name appears to hearken back to the famed 1936 Flint Sit-Down Strike against GM, which led to the first contract between the automaker and the union.
What are the main issues?
The union is seeking a significant boost in wages (they requested 40%), job security and a return of regular cost-of-living adjustments and pensions among other things. The companies want to limit the rise in labor costs at a time when they are also spending money to invest in a transition toward electric vehicle production. As of Wednesday, according to Fain, Ford’s wage increase offer was highest, at 20%, followed by GM at 18% and Stellantis at 17.5%.
Why does the union believe workers should get such a big increase?
The union argues that worker wages have fallen far short of the rising cost of living and with the high price of new vehicles many workers can’t even afford to buy what they build. The companies have also been profitable for
years, launching stock buyback programs and issuing dividends. The union says the percentage was pegged to the increase in CEO pay in recent years. CEO compensation is in the multiple millions of dollars.
I’ve heard the percentage wage increase being sought or offered shifted. Why?
During any negotiations, the two sides might start at one point and then move down from their initial ask or up from their initial offer as they work to reach a deal. Negotiations are fluid and proposals can change many times. In some cases, the percentages might shift as different proposals increase or decrease the amount of money involved in one area or another.
How profitable have the companies been?
The union has frequently pointed to a quarter of a trillion dollars in North American profits that the automakers have booked in the last decade. Ford and GM announced their secondquarter earnings in July, reporting $1.9 billion
and $2.5 billion in net income, respectively, and Stellantis reported first half 2023 earnings of $12 billion. Workers do get profit-sharing checks, which is a point the automakers like to reference.
If the automakers have made so much money, why are they reluctant to offer as much as the union wants?
The automakers say they need to stay competitive. Not only are they spending money for the EV transition when EVs still make up only a fraction of the new vehicle market but the automakers point to the many non-union shops, particularly those of the foreign transplants in the South, with lower labor costs. That also applies to EV companies like Tesla. The union argues that labor costs aren’t responsible for driving up vehicle prices and that competing to keep wages lower is a race to the bottom.
If there’s a strike, how would workers pay their bills?
The union offers strike pay for striking workers
of $500 per week. That amount was increased earlier this year from $400 per week. The pay begins accruing on the first day of a strike. The union’s strike fund, estimated at $825 million, provides the money for strike pay.
How long could a strike last?
It’s not clear at this point. A 2019 strike against GM lasted 40 days. Some strikes against the automakers have lasted a couple of days. Others have gone much longer, apparently longer than 100 days.
It’s believed it would be unprecedented to have a strike against all three automakers at the same time, but that is a distinct possibility here. Eventually the two sides would be expected to reach a settlement, called a tentative agreement. The members would have to vote on the agreement before a new contract could be ratified and implemented.