NATIONAL NEWS

Workers are on strike at all 3 Detroit auto makers for the first time in their union’s history

Sep 15, 2023, 6:17 AM

FILE - United Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019. Automake...

FILE - United Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019. Automaker Stellantis has made a counteroffer to the United Auto Workers that includes wage increases in each year of a new four-year contract totaling 14.5%. The raises, which would be for most workers, doesn’t include any lump sum payments. (AP Photo/Paul Sancya, File)
Credit: ASSOCIATED PRESS

(AP Photo/Paul Sancya, File)

DETROIT (AP) — About 13,000 U.S. auto workers stopped making vehicles and went on strike Friday after their leaders couldn’t bridge a giant gap between union demands in contract talks and what Detroit’s three automakers are willing to pay.

Members of the United Auto Workers union began picketing at a General Motors assembly plant in Wentzville, Missouri; a Ford factory in Wayne, Michigan, near Detroit; and a Stellantis Jeep plant in Toledo, Ohio.

It was the first time in the union’s 88-year history that it walked out on all three companies simultaneously as four-year contracts expired at 11:59 p.m. Thursday.

The strikes will likely chart the future of the union and of America’s homegrown auto industry at a time when U.S. labor is flexing its might and the companies face a historic transition from building internal combustion automobiles to making electric vehicles.

If they last a long time, dealers could run short of vehicles and prices could rise, impacting a U.S. economy already under strain from elevated inflation. The walkout could even be a factor in next year’s presidential election by testing Joe Biden’s proud claim to be the most union-friendly president in American history.

“Workers all over the world are watching this,” said Liz Shuler, president of the AFL-CIO, a federation of 60 unions with 12.5 million members.

The strike is far different from those during previous UAW negotiations. Instead of going after one company, the union, led by its pugnacious new president, Shawn Fain, is striking at all three. But not all of the 146,000 UAW members at company plants are walking picket lines, at least not yet.

Instead, the UAW targeted a handful of factories to prod company negotiators to raise their offers, which were far lower than union demands of 36% wage increases over four years. GM and Ford offered 20% and Stellantis, formerly Fiat Chrysler, offered 17.5%.

Outside the Ford plant in suburban Detroit, Britney Johnson, 35, who has worked for the company about 3 1/2 years and has yet to reach top union wages, said she’d like higher pay, the return of pensions, and cost of living increases. “I like the job. It’s just that we deserve more,” she said.

She joined about 400 workers on the picket line outside the plant.

At the Toledo Jeep plant, assembly line worker Candace Bowles, 52, said it felt “strange” to walk off the job. “I didn’t want to have to do it, but got to do it,” said Bowles.

As the deadline approached, she cleaned up her workstation and walked out when the midnight bell rang. “I’m really happy that everyone stood together,” she said.

The limited strikes will help to preserve the union’s $825 million strike fund, which would run dry in about 11 weeks if all workers walked out. But Fain said more plants could be added if the companies don’t make better offers.

Even Fain has called the union’s demands audacious, but he maintains the automakers are raking in billions and can afford them. He scoffed at company statements that costly settlements would force them to raise vehicle prices, saying labor accounts for only 4% to 5% of vehicle costs.

“They could double our raises and not raise car prices and still make millions of dollars in profits,” Fain said. “We’re not the problem. Corporate greed is the problem.”

The strikes capped a day of both sides griping that the other had not budged enough from their initial positions.

In addition to general wage increases, the union is seeking restoration of cost-of-living pay raises, an end to varying tiers of wages for factory jobs, a 32-hour week with 40 hours of pay, the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans, pension increases for retirees and other items.

Starting in 2007, workers gave up cost-of-living raises and defined benefit pensions for new hires. Wage tiers were created as the UAW tried to help the companies avoid financial trouble ahead of and during the Great Recession. Even so, only Ford avoided government-funded bankruptcy protection.

Many say it’s time to get the concessions back because the companies are making huge profits and CEOs are raking in millions. They also want to make sure the union represents workers at joint-venture electric vehicle battery factories that the companies are building so workers have jobs making vehicles of the future.

Top-scale assembly plant workers make about $32 per hour, plus large annual profit-sharing checks. Ford said average annual pay including overtime and bonuses was $78,000 last year.

The Ford plant that’s on strike employs about 3,300 workers, and it makes Bronco SUVs and Ranger midsize pickup trucks. The Toledo Jeep complex has about 5,800 workers and manufactures the Jeep Wrangler SUV and Gladiator pickup. GM’s Wentzville plant has about 3,600 workers and makes the GMC Canyon and Chevrolet Colorado midsize pickups, as well as the GMC Savana and Chevrolet Express full-size vans.

The union didn’t go after the companies’ big cash cows, which are full-size pickup trucks and big SUVs, and went more for plants that make vehicles with lower profit margins, said Marick Masters, a business professor at Wayne State University in Detroit.

“They want to give the companies some space without putting them up against the wall,” Masters said. “They’re not putting them right into the corner. You put an animal in the corner and it’s dangerous.”

Automakers say they’re facing unprecedented demands as they develop and build new electric vehicles while at the same time making gas-powered cars, SUVs and trucks to pay the bills. They’re worried labor costs will rise so much that they’ll have to price their cars above those sold by foreign automakers with U.S. factories.

GM CEO Mary Barra told workers in a letter Thursday that the company is offering historic wage increases and new vehicle commitments at U.S. factories. GM’s offer, she wrote, “addresses what you’ve told us is most important to you, in spite of the heated rhetoric from UAW leadership.”

On CNBC Thursday, Ford CEO Jim Farley said if Ford had agreed to the union’s demands, it would have lost $15 billion during the last decade and gone bankrupt.

Under the UAW strategy, workers who go on strike would live on $500 per week in strike pay from the union, while others would stay on the job at full pay. It’s unlikely the companies would lock the remaining workers out of their factories because they want to keep building vehicles.

It’s tough to say just how long it will take for the strikes to cut inventories at dealers and start hurting the companies’ bottom lines.

Jeff Schuster, head of automotive for the Global Data research firm, said Stellantis has the most inventory and could hold out longer. The company has enough vehicles at or en route to dealers to last for 75 days. Ford has a 62-day supply and GM has 51.

Still, Schuster predicted the strikes could last longer than previous work stoppages such as a 40-day strike against GM in 2019.

“This one feels like there’s a lot more at risk here on both sides,” he said.

____

Williams reported from Wayne, Michigan, while Householder reported from Toledo, Ohio.

KSL 5 TV Live

National News

Chief Ben Barnes of the Shawnee Tribe talks about the tribes involvement in Civilization VII at the...

Graham Lee Brewer and Matt O'Brien, Associated Press

Civilization 7 makers work with Shawnee to bring sincere representation of the tribe to the game

When Firaxis approached the tribal nation with a proposal to make a playable character out of their famous leader Tecumseh in the upcoming game Civilization 7, Barnes felt a rush of excitement.

45 minutes ago

FILE: Dolly Parton (Photo by John Lamparski/Getty Images)...

Dan Heching, CNN

Dolly Parton pitches in toward Hurricane Helene relief efforts

Parton, along with her companies Dollywood Parks & Resorts, The Dollywood Foundation, Dolly Parton’s Stampede and Pirates Voyage, will partner with Walmart to provide significant donations to flood relief across the Appalachian region.

1 hour ago

FILE - In this image released by the U.S. Air Force, U.S. Army Soldiers assigned to 1st Battalion, ...

Haley Britzky, Way Mullery and Amy O’Kruk, CNN

The US has strengthened its military posture in the Middle East amid unrest. Here’s where those assets are deployed

The US has strengthened its military posture consistently in the Middle East over the last year following the breakout of the war between Israel and Hamas, with tensions increasing further in the days after Israel launched its operation against Hezbollah.

2 hours ago

STATELINE, NEVADA - JULY 13: The NBC Sports logo is shown on a microphone during the Fallon vs Khal...

Carlysle Price

Conference weekend programming; where to watch NASCAR, NBC Sports

Channel 5 will have a difference in scheduling this upcoming weekend, due to General Conference programming. But have no fear; you can still cheer on your favorite teams by following this guide.

4 hours ago

The scene where William Nicholas Abraham's body was found in a tarp is seen along Highway 51 in Tan...

Rebekah Riess, CNN

TikTok content creator arrested in murder case of Baton Rouge therapist

A TikTok content creator was arrested in Dallas this week and is facing a second-degree murder charge in the death of a Baton Rouge counselor and life coach whose body was found on the side of a Louisiana highway over the weekend, law enforcement officials said Thursday.

4 hours ago

A photo of the Port of Baltimore taken October 3, when operations at that port and others along the...

Chris Isidore and Vanessa Yurkevich, CNN

The port strike is over. Here’s what happens next

It took only three days for one side to blink and the potentially crippling strike at the United States’ East and Gulf Coast ports to come to an end, with likely only limited damage to America’s economy.

5 hours ago

Sponsored Articles

abstract vector digital social network technology background...

Les Olson

Protecting yourself against social engineering attacks

Learn more about the common types of social engineering to protect your online or offline assets from an attack.

family having fun at home...

Lighting Design

Discover the impact of lighting on your mood

From color temperature to lighting saturation, we tackle how different lighting design setups can impact your day-to-day mood.

Laptops in a modern technology store. Department of computers in the electronics store. Choosing a ...

PC Laptops

How to choose the best laptop for college students

Finding the right laptop for college students can be hard, but with this guide we break down what to look for so you can find the best one.

young male technician is repairing a printer at office...

Les Olson

Unraveling the dilemma between leasing and buying office technology

Carefully weigh these pros and cons to make an informed decision that best suits your business growth and day-to-day operation. 

A kitchen in a modern farmhouse....

Lighting Design

A room-by-room lighting guide for your home

Bookmark this room-by-room lighting guide whenever you decide to upgrade your lighting or style a new home.

Photo courtesy of Artists of Ballet West...

Ballet West

The rising demand for ballet tickets: why they’re harder to get

Ballet West’s box office is experiencing demand they’ve never seen before, leaving many interested patrons unable to secure tickets they want.

Workers are on strike at all 3 Detroit auto makers for the first time in their union’s history