2023-09-15 03:35:56
Read also: The United States is heading towards an unprecedented automobile strike
The three sites concerned are assembly plants: in Wentzville (Missouri) for GM, in Toledo (Ohio) for Stellantis and in Wayne (Michigan) for Ford. They total approximately 12,700 UAW union members.
“Historical”
Shawn Fain urged the approximately 146,000 union members working within the three historic American manufacturers to be ready to take their turn depending on the evolution of the negotiations. And he warned that the union would not hesitate to expand the movement.
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 for the future” during the transformation of the automobile industry towards electric. According to the group, the counter-proposal sent Thursday evening by the UAW “showed few differences from the initial demands” of the union. Ford called the offer he made to the union more than two days ago “historically generous with significant wage increases” and other benefits.
Negotiations began two months ago to develop new collective agreements for four years. “We told businesses, from the beginning, that September 14 (at midnight) was a deadline, not a milestone,” Shawn Fain warned on Wednesday.
“I don’t know what Shawn Fain is doing but he’s not negotiating this contract with us when it’s regarding to expire. But I know he is busy preparing a strike,” Jim Farley, Ford boss, commented Thursday followingnoon on CNBC. He wants to “make a historic strike in the three groups but we want to make history with a historic agreement,” he said.
The president of General Motors, Mark Reuss, had estimated shortly before him on the same channel that a strike would constitute “a very, very sad outcome” with significant consequences. “For one person in our factories who does not work, there are six others in the community who do not work,” he said.
Political consequences
The last strike in the sector dates back to 2019, it only affected GM. It lasted six weeks. Stellantis affirmed on Wednesday evening that it wanted to “discuss in good faith to reach a draft agreement” before the deadline.
The UAW is demanding a 36% wage increase over four years, while the three American manufacturers have not gone further than 20% (Ford), according to the union leader. The three historic giants of Detroit also refused to grant additional days of leave and to increase pensions, provided by funds specific to each company.
The consulting firm Anderson Economic Group (AEG) estimates that a ten-day strike might represent more than five billion dollars in lost revenue for the American economy. And a prolonged social conflict might have political consequences for President Joe Biden, whose economic record is criticized, in particular due to stubborn inflation in the United States.
Presidential election
A little over a year before the presidential election, the head of state is walking on eggshells, between his stated support for unions and the specter of a blow to the American economy through a strike. He spoke by telephone Thursday evening with Shawn Fain and with the leaders of the manufacturers to provide an update on the negotiations. In mid-August, he pleaded for a “win-win” and “fair” agreement strengthening workers’ rights during the transition to electric vehicles.
“Consumers and dealers are, in general, relatively protected from the effects of a short strike,” explained AEG vice-president Tyler Theile. But with inventories a fifth of what the industry had in 2019, during the last GM strike, they “might be hit much more quickly” than four years ago, he said.
“We are arriving in the fourth quarter, a period during which we see the most sales of pick-ups and large SUVs, which are very profitable for these three manufacturers,” recalls Jessica Caldwell, of the specialized site Edmunds.com. “If they don’t have enough in stock, they’re going to miss out on sales,” she adds.
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