The UAW Strikes To Get GM and Ford More Assembly Plants: Surprise Moves And Political Challenges For The United Auto Workers

The UAW is working to get General Motor and Ford to a new contract deal, by adding two additional assembly plants.

Workers at Ford’s Chicago Assembly Plant and GM’s Lansing-Delta Assembly Plant will not be on the job tomorrow, unless there is a change of plans for the targeted automakers.

Surprise moves are still possible. The announcement of strike targets by UAW president Shawn Fain was delayed by nearly half an hour — because, Fain said, just “moments before the broadcast” Stellantis made a significant offer that persuaded the union to spare the company from the strike expansion.

Ford’s Chicago plant builds the Ford Explorer, the Lincoln Aviator and police vehicles, while GM’s Lansing-Delta plant assembles the Buick Enclave and Chevrolet Traverse. A stamping plant at Lansing will not be shut down.

The plants that would have the most impact on the supply chain are not yet targets for work disruptions, and full-size pickup trucks remain unaffected.

The UAW’s strike comes at a time of heightened union activity across the U.S.. with some workers winning big new contracts, including UPS drivers and airline pilots.

A week later, the union expanded the strike to the parts distribution centers of GM and Stellantis – but not Ford, citing significant concessions Ford had been willing to make at the bargaining table.

The UAW says the strategy is to ramp up pressure on the automotive industry gradually, instead of having all of them walk off at the same time.

Hollywood actors are also currently on strike, while Las Vegas hospitality workers and Kaiser Permanent health care workers are threatening to walk off their jobs.

The list of things that the UAW has asked for go beyond anything that corresponds to reality today, for better or worse. It is unfortunate but it is what it is.

The UAW’s strike, centered in the pivotal swing state of Michigan, is also a political flash point. President Biden made an unprecedented visit to the picket line on Tuesday, endorsing the union’s demands, including their push for a 40% raise over the next four years.

Meanwhile former president and Republican front-runner Donald Trump spoke at a non-union auto plant on Wednesday, where he criticized the transition to electric vehicles.

He was an adviser to the Obama administration when it provided aid to the automotive industry during the global financial crisis. Now, he is weighing in on the union strikes against the big 3 American automakers.

What do we really want to see in the future? How do we expect to see a change in compensation and how to bring it into line with reality?

Look, it’s normal in negotiations for the party that’s trying to get something to ask for more than they expect to get, or could possibly get. It’s normal for the other side of the bargain to start with relatively low proposals and work their way up. That’s all totally normal.

They asked for a week of 32 hours. In other words, to work four days and get paid for five, having one personal day a week off. They made 40% wage increases. I think they’re down to maybe around 30 or 35 at the moment, and that’s a fair place to be bargaining.

They’ve asked for a number of changes, including the retiree health care program, which they want to bring into line with normal practice rather than overly generous practice.

Because you have to put the whole thing in context. Ford and Chrysler are doing well right now. They have cash, they have profits, they have the ability to pay them more, but they also have to compete against other companies. There are companies in the South that don’t have unions at all.

If the Detroit companies have high wage costs and fringe benefit costs, they can’t compete. They lose car sales. The jobs are lost and the people move to other places.

You can narrow it two ways. If you bring the workers up, you can bring the CEOs down. I’m suggesting a combination of both. It isn’t a question of how much money you have.

With the number of workers relative to the number of CEOs and CFOs, there is no amount of compensation in dollars that you could take away from these executives, and create a pool of money that could make a difference to workers.