US strike: movement at auto plants could spread to Canada

The United Auto Workers (UAW) union will announce on Friday which other U.S. plants will go on strike unless serious progress is made in negotiations with Detroit’s three automakers.

Last week, the UAW called partial strikes at Ford, General Motors and Chrysler parent Stellantis, targeting each company’s U.S. assembly plants. It produces midsize pickup trucks that generate comfortable sales without being the goose that lays the golden eggs for Michigan’s historic big-city manufacturers. For the first time in UAW history, he organized a simultaneous strike by the Big Three, the traditional Big Three. About 12,700 workers out of the 146,000 UAW members employed in those groups are on strike at three U.S. factories. This is a deliberately reduced number that allows strikers to rotate and promises long-term disruption.

The three automakers have offered 20% raises over the four-and-a-half years of their agreements; the UAW is asking for 40% through 2027, matching the increases given to group executives over the last four years. The union is also calling for improved social protection. Discussions have made little progress since last week, despite Joe Biden’s call to share profits in a “fair” way. “We’re not going to wait forever for them to drag this out,” UAW President Sean Fein said in a video message posted late Monday, setting the new deadline.

Risk of paralysis of American production

Unlike Stellantis and General Motors, Ford has traditionally had good relations with its unions. The manufacturer has not experienced a strike in the United States since 1978 and in Canada since 1990. Ford managed to circumvent the strike by signing a contract with the Canadian union Unifor, which represents about 5,600 workers at three plants in Canada, and it was extended. 24 hours before Monday night’s deadline after receiving a “substantial offer” from Ford. But, according to Shaun Fain, “Unifor members must continue to be prepared to strike.” Ford said in a statement that the company agreed to continue negotiations after the contract expires in hopes of reaching an agreement in principle.

The company has two plants in Canada that produce V-8 engines for the American F-Series and Super Duty pickup trucks. The company also has an assembly plant in Ontario. Any strike by Canadian workers that shuts down these engine plants could cripple production of Ford’s most profitable vehicles in the United States. “Our influence on Ford’s North American operations is small, but it has an impact. This is our leverage and we will use it,” Lana Payne, national president of Unifor, said in a video message released earlier Monday.

Unifor called for higher wages and pensions, as well as support for the transition to electric vehicles and additional investment commitments from Ford. Once an agreement with Ford is reached, Unifor will work to finalize agreements with GM and Stellantis, which were delayed during negotiations with Ford.

Negotiations between the UAW and Detroit automakers continued Monday as the U.S. strike entered its fourth day with no apparent sign of progress toward an agreement. The union and business are at loggerheads over wages and employee benefits. At one point in the negotiations, the UAW offered to lower its demand to 36 percent.