Three auto plants are going on strike this Friday after a midnight deal was not reached between the powerful UAW union and three major American manufacturers. “We will strike at Big Three in the same time. We are launching a new strategy,” Sean Fein, president of the United Auto Workers, announced Thursday night, two hours before a deadline to reach an agreement with executives at General Motors (GM), Ford and Stellantis.
The three sites in question are assembly plants: Wentzville, Missouri, for GM, Toledo, Ohio, for Stellantis, and Wayne, Michigan, for Ford. In total they have about 12,700 UAW members. Sean Fein warned that the union would not hesitate to expand the movement. The UAW is demanding a 36% wage increase over four years, while three U.S. manufacturers won’t go beyond 20%, according to a union leader.
According to Ford, the “historically generous” offer
In a statement released immediately, Ford said it was “absolutely committed to reaching an agreement that rewards employees and protects Ford’s ability to invest in the future” as the auto industry transitions to electric power.
The counterproposal sent Thursday night by the UAW “deviates little from the original demands” of the union, the group said. Ford called the offer he made to the union more than two days ago “historically generous, with significant wage increases” and other benefits.
Two months ago, negotiations began on the development of new collective agreements for a period of four years. “We have told businesses from the beginning that September 14 (midnight) is a deadline, not a milestone,” Sean Fein warned on Wednesday.
“Very, very sad outcome”
General Motors Chairman Mark Reuss said a strike would be a “very, very unfortunate outcome” with significant consequences. “For every person not working in our factories, there are six people in the community who are not working,” he said.
The last strike in the industry dates back to 2019; it affected only General Motors and lasted six weeks. On Wednesday evening, Stellantis confirmed it wanted to “discuss in good faith to reach a draft agreement” before the deadline. Three historic Detroit giants in particular have refused to provide additional vacation days or raise pension benefits provided through company-specific funds.
Consulting firm Anderson Economic Group (AEG) estimates that a ten-day strike could result in more than $5 billion in lost revenue for the American economy. And the prolonged social conflict could have political consequences for President Joe Biden, whose economic performance has been criticized.
Source: Le Parisien
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