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April 16, 2024

UAW Launches Strike Against Big Three Automakers After Failed Labor Negotiations

In a dramatic turn of events, the United Auto Workers (UAW) has announced a widespread strike against major automakers General Motors (GM), Ford, and Stellantis, following a breakdown in labor negotiations. The strike officially commenced at midnight, with workers from select plants walking off the job. This move marks a significant development in the ongoing labor disputes within the automotive industry.

UAW President Shawn Fain took to the airwaves to make the announcement during a Facebook Live event on Thursday night. He directed three local unions to initiate the strike at the following key locations:

  1. Ford Michigan Assembly Plant: Located in Wayne, Michigan, responsible for final assembly and paint, represented by Local 900 in Region 1a.
  2. GM Wentzville Assembly Center: Situated in Wentzville, Missouri, represented by Local 2250 in Region 4.
  3. Stellantis Toledo Assembly Complex: Based in Toledo, Ohio, and represented by Local 12 in Region 2b.

While these three plants are now on strike, other UAW-affiliated workers continue their duties under expired contracts. President Fain emphasized that all options are still on the table, hinting at possible future strikes.

In a show of solidarity, UAW members and their supporters will rally at the UAW-Ford Joint Trusts Center in Detroit at 4 p.m. today.

The UAW’s demands during these negotiations encompass a range of issues, including cost-of-living adjustments, improved retiree benefits, increased paid time off, the right to strike against plant closures, an end to tiered wages and benefits, and the restoration of defined benefit pensions and retiree healthcare. These demands come at a time when the automotive industry is undergoing a seismic shift towards electric vehicles.

Tensions had been mounting during the negotiations, and UAW members employed by GM, Ford, and Stellantis had overwhelmingly voted to authorize a strike if agreements were not reached by the expiration of their 4-year labor contracts on September 14.

Adding to the complexity of the situation, the UAW filed a complaint with the National Labor Relations Board against GM and Stellantis, alleging unfair labor practices during the contract talks. However, no such complaint was filed against Ford.

Throughout the past two months, the Big Three automakers presented multiple proposals, all of which faced staunch opposition from UAW President Shawn Fain. Recently, the automakers sweetened their offers with higher wage increases, although still falling short of the UAW’s ambitious demand for a 36% raise:

  • Ford increased its offer from 9% to 20% over four and a half years.
  • GM increased its offer from 10% to 20% over four and a half years.
  • Stellantis increased its offer from 14.5% to 17.5% over four and a half years.

As negotiations progressed, Fain delivered an update on Wednesday, acknowledging some progress but accusing Ford CEO Jim Farley of making misleading statements regarding the automaker’s proposals, particularly regarding the elimination of wage tiers. Farley disputed these claims and expressed eagerness to continue negotiations, underscoring the importance of constructive dialogue between both parties.

This strike casts a shadow of uncertainty over the automotive industry, raising concerns about potential disruptions to production and the supply chain. As the strike unfolds, all eyes are on the UAW and the Big Three automakers to find common ground and bring an end to this labor dispute.

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