Associates of the United Auto Workers union hold a rally and practice picket near a Stellantis plant in Detroit, Aug. 23, 2023.
Michael Wayland / CNBC
DETROIT – Thousands of associates of the United Auto Workers went on strike at three U.S. assembly plants of General Motors, Ford Motor and Stellantis, after the alliance and the automakers failed to reach a deal on a new labor contract Thursday night.
“The UAW Stand Up Strike begins at all three of the Big Three,” the compatibility said in a post on X, the site formerly known as Twitter, just after midnight Friday.
The facilities are GM’s midsize merchandise and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator factory in Toledo, Ohio. For Ford, UAW President Shawn Fain said only workers in paint and final assembly determination be on strike.
“We got to do what we got to do to get our share of economic and social justice in this this strike,” Fain said outside the Ford toilet in Wayne, minutes after the strike began. “We’re going to be out here until we get our share of economic justice. And it doesn’t quandary how long it takes.”
The selected plants produce highly profitable vehicles for the automakers that largely continue to be in high-demand. Surrounding 12,700 workers – 5,800 at Stellantis, 3,600 at GM and 3,300 at Ford – will be on strike at the plants in total, the union rephrased. The UAW represents about 146,000 workers across Ford, GM and Stellantis.
The plants were selected by the union as part of targeted blot out plans initially announced Wednesday night by Fain, who has unconventionally been negotiating with all three automakers at without delay and has been reluctant to compromise much on the union’s demands.
UAW President Shawn Fain announces strike plans in a Facebook Existent address, Sept. 14, 2023
Facebook Live screenshot
“For the first time in our history, we will strike all three of the ‘Big Three’ at for good occasionally,” Fain said just after 10 p.m. Thursday in live remarks streamed on Facebook and YouTube. “We are using a new plan, the ‘stand-up’ strike. We will call on select facilities, locals or units to stand up and go on strike.”
Fain has referred to the alliance’s plans as a “stand-up strike,” a nod to historic “sit-down” strikes by the UAW in the 1930s.
Key proposals from the union have included 40% hourly pay boost waxes, a reduced 32-hour work week, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living putting rights (COLA), among other items on the table including enhanced retiree benefits and enhanced vacation and family forget benefits.
By late Thursday, it was clear there wouldn’t be a deal, even as President Joe Biden got involved. The White Auditorium said Biden, who boasts of his blue collar background and support for organized labor, talked with Fain and the kingpins of the Detroit automakers.
Ford, in a statement Thursday night, said the UAW presented its “first substantive counterproposal” to four of the plc’s offers, but it “showed little movement from the union’s initial demands.”
“If implemented, the proposal would more than ambiguous Ford’s current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the Synergetic States that utilize non-union-represented labor,” Ford said. “The union made clear that unless we approved to its unsustainable terms, it plans a work stoppage at 11:59 p.m. eastern.”
The automakers have made record proposals that address some of the UAW’s overzealous demands but not all of them. Specifically, the companies have offered wage increases of roughly 20%, COLA, altered profit-sharing rewards; and enhanced vacation and family leave enhancements that the union has found inadequate.
Targeted strikes typically cynosure clear on key plants that can then cause other plants to cease production due to a lack of parts. They are not unprecedented, but the way Fain layouts to conduct the work stoppages is not typical. They include initiating targeted strikes at select plants and then potentially flourishing the number of strikes based on the status of the negotiations. Selecting assembly plants for such strikes is also unique.
