2023-09-15 21:41:59
– Joe Biden takes the side of the auto sector strikers
Joe Biden showed his support for the American unions who began an unprecedented and simultaneous strike on Friday among the three largest automobile manufacturers.
Published: 09/15/2023, 11:41 p.m.
The walkout began Friday at three assembly plants: the Ford plant in Wayne, in the Detroit (Michigan) area, the GM site in Wentzville (Missouri) and the Toledo (Ohio) site for Stellantis.
Getty Images via AFP
The unprecedented strike hitting the three major American automobile manufacturers for less than 24 hours led to the first collateral consequences on Friday, while President Joe Biden pleaded for a “fair” sharing of their “record profits”.
The Ford group has announced the temporary dismissal of around 600 employees from its Wayne (Michigan) plant, due to lack of activity. They will not be entitled to unemployment benefits. According to the manufacturer, “the strike in the assembly and painting section” affects employees in non-striking sectors who cannot accomplish their tasks due to lack of equipment. “Our production system is highly interconnected,” he explained.
This factory is one of three sites affected by a work stoppage launched overnight from Thursday to Friday. It targets the “Big Three”, the “Big Three” American manufacturers – General Motors (GM), Ford and Stellantis (resulting from the merger of the French PSA and the American Chrysler). Despite two months of negotiations, they did not reach an agreement with the powerful auto union, the United Auto Workers (UAW) on new collective agreements before the deadline Thursday evening.
“No one wants a strike”
“Companies have made significant proposals but I think they should go further” with employees, President Joe Biden said on Friday. UAW boss Shawn Fain showed willingness on Friday followingnoon to continue negotiations. “Today we bring our members together. Tomorrow we will be at the negotiating table,” he said, affirming that the three groups had now received a “complete counter-offer”.
Joe Biden, who is seeking a second term at the White House in 2024, regularly shows his support for unions in all sectors. “No one wants a strike,” he said, nevertheless assuring that he understood “the frustration of workers,” who “deserve a fair share of the benefits they helped create.” In the first half of 2023, the three manufacturers generated a cumulative turnover of 276 billion dollars and a net profit of 20.25 billion.
Worry
The walkout began Friday at three assembly plants: the Ford plant in Wayne, in the Detroit (Michigan) area, the GM site in Wentzville (Missouri, center) and that of Toledo (Ohio, north) for Stellantis. Around 12,700 employees were expected to walk out on Friday, according to the union. The movement might spread.
Shawn Fain ordered the approximately 146,000 members of his organization working for these manufacturers to be ready to strike depending on the evolution of the negotiations. The last strike in the sector dates back to 2019 and only affected GM, for six weeks. Despite his support for unions, Joe Biden might be penalized by a prolonged or widened social conflict, which may indeed weigh on growth.
His economic record is already regularly criticized by Republicans, in particular because of stubborn inflation. According to the consulting firm Anderson Economic Group (AEG), whose clients include Ford and GM, a ten-day strike by all UAW union members might represent more than five billion dollars in lost revenue for the economy. American.
40% increase
Negotiations began two months ago to develop new collective agreements for four years. The UAW is demanding a wage increase of around 40% over four years, while the three manufacturers have not gone further than 20% at most, according to the union.
The giants have also notably refused to grant additional days of leave and to increase pensions, provided by funds specific to each company. Interviewed on CNN on Friday, GM boss Mary Barra defended the manufacturers’ proposals, which include “not only a 20% increase in gross salary, but also profit sharing, world-class health coverage and several other features “.
AFP
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