UAW strike hits US auto giants GM, Ford, Stellantis: Here's all you should know

Members of the UAW (United Auto Workers) picket and hold signs outside of the UAW Local 900 headquarters across the street from the Ford Assembly Plant in Wayne, Michigan on September 15, 2023. (AFP Photo)

The United Auto Workers (UAW) union in the United States initiated on September 15 a coordinated strike against the three major Detroit automakers – General Motors, Ford, and Stellantis.

This is the first time the union has organised such a strike, with the main demand being a pay raise of 40 percent. The action comes after failed discussions between the UAW and the "Big Three" automakers over execution of a new contract.

The UAW represents over 150,000 workers across the three automakers, but only 12,700 people are involved in the the current strike. The strike is currently restricted to particular facilities within each company: a Ford factory in Wayne, Michigan, a Stellantis facility in Toledo, Ohio, and a GM plant in Wentzville, Missouri. At all these places, final assembly and paint activities sections are affected.

According to the UAW, the strike might extend to new locations depending on how well the negotiations go on.

What are UAW's demands

UAW's key demand is for a 40 percent raise in wages. UAW President Shawn Fain is demanding for this hefty pay increase in line with the salary increases seen among CEOs in recent years.

Additional demands include increasing the compensation and benefits of junior employees to align with the levels received by their more experienced colleagues, who currently earn a rate of around $32 an hour.

The demand is also over commitments required by the companies to job security and the removal of wage "tiers" among workers. Fain also said cost-of-living provisions were inadequate.

Workers are emphasising the need for the car industry giants to give enhanced compensation packages in order to make up for the inadequate salaries and benefit reductions due to the 2008 financial crisis.

Workers say that the car manufacturers have seen strong profitability and that it is only reasonable that they receive a part of those profits.

Stalled talks: "Big Three" automakers' stand

Ford, General Motors and Stellantis have been in talks with them for the last four months over a new four-year contract, but with no results as expected by them, said UAW. The current wage hikes proposed are 20 percent at Ford, 20 percent at GM and 17.5 percent at Stellantis.

According to Fain, the automakers have not accepted to union demands over job security and the removal of worker wage disparities. The automakers have also showed resistance to policies that would improve retiree health benefits and reinstate guaranteed pensions for all workers.

General Motors in a statement on September 15 said it would "continue to bargain in good faith with the union to reach an agreement as quickly as possible".

What Ford has offered

Ford CEO Jim Farley on September 12 announced an offer that includes wage hikes, steps to fight inflation, 17 paid holidays and higher retirement contributions, but, objected to the 32-hour workweek, or a four-day workweek demand made by UAW.

What Stellantis has offered

Stellantis announced on September 11 an offer that included a $6,000 one-time inflation adjustment in the first year of the contract, and thereafter $4,500 in such payments over the following three years.

However, Fain said "It doesn't make up for inflation. It doesn't make up for decades of falling wages. And it doesn't reflect the massive profits we've generated for this company."

(With agency inputs)