Fri. Apr 12th, 2024

From today’s Reuters News Service:

United Auto Workers (UAW) President Shawn Fain said on Wednesday the union is preparing to strike against the Detroit Three automakers, a day before four-year labor deals are set to expire Thursday night.

Fain said the Detroit Three automakers had offered pay raises of as much as 20% over four and a half years but called the hikes inadequate.

Coordinated strikes would mark the first-ever simultaneous labor stoppage at all three Detroit automakers and one of the largest U.S. industrial labor actions in recent years.

“We’re making progress but we’re still very far apart on our key priorities,” Fain said in a Facebook Live address.

Ford Motor (F.N) has proposed a 20% hike in pay, General Motors 18% (GM.N), and Chrysler-parent Stellantis (STLAM.MI) 17.5%, Fain said. That is less than half the 40% pay hikes the union has sought — including an immediate 20% hike on ratification of a contract and 5% annual hikes.

Fain outlined a strategy to “create confusion” for the Detroit Three automakers with a series of strikes targeting individual U.S. plants if no deal is reached.

Reuters reported late on Tuesday that the union may opt to strike at targeted auto plants if they fail to reach new contracts covering 146,000 U.S. auto workers.

A UAW strike that shuts the Detroit Three manufacturers could cost carmakers, suppliers and workers over $5 billion, Michigan-based Anderson Economic Group estimated, and could lead to a disruption of the broader auto supplier network.

Read the complete story here.

By Editor