DETROIT – Contracts between the United Auto Workers union and Detroit’s Big Three automakers are set to expire tonight if an agreement isn’t reached.
The existing contract expires at 11:59 p.m. on Thursday, Sept. 14. Nearly all of the 146,000 autoworkers represented by the UAW have already voted to authorize a strike, should leaders decide to call one.
Where do contract negotiations stand?
Auto Workers President Shawn Fain said Wednesday that the offers from the companies aren’t enough and the union is getting ready to strike.
Fain said General Motors, Ford, and Stellantis raised their initial wage offers, but rejected some of the union’s other demands.
“We do not yet have offers on the table that reflect the sacrifices and contributions our members have made to these companies,” he said. “To win we’re likely going to have to take action. We are preparing to strike these companies in a way they’ve never seen before.”
What happens if a deal isn’t reached in time?
Fain has warned that autoworkers will strike at any of the Big Three automakers that haven’t reached a deal by the deadline. If a national strike is called at each of the Big Three at the same time, it would be the first time in history.
Fain said that it is still possible that all 146,000 UAW members could walk out, but the union will begin with striking at a limited number of plants. He said the final decision on which plants to strike won’t be made until Thursday night and will be announced at 10 p.m. Eastern time.
“If the companies continue to bargain in bad faith or continue to stall or continue to give us insulting offers, then our strike is going to continue to grow,” Fain said. He said the targeted strikes, with the threat of escalation, “will keep the companies guessing.”
Striking at individual plants would be less costly to the union. Members who are striking receive $500 per week.
The Associated Press estimates that if the UAW strikes against all three automakers at the same time, the union’s $825 million strike fund would run out in under three months -- not including payments by the union for health insurance.
What is the UAW demanding?
The UAW has been very public with its demands of the Big Three automakers leading up to the contract deadline.
The UAW has asked that automakers eliminate tiers. Currently, automakers have a tiered wage system. Workers in the first tier earn about $28 per hour, and those hired after 2007 are in the second tier and earn about $16 to $19 per hour.
Other demands include big wage increases, restoration of Cost of Living Adjustments, retiree medical benefits, defined benefit pension, right to strike over plant closures, a working family protection program, and more.
According to the Associated Press, Ford offered 20% over 4½ years, while GM was at 18% for four years and Stellantis was at 17.5%. Fain said all three companies’ offers on cost-of-living adjustments were deficient.
---> Read more: Here’s what the UAW is demanding from Detroit’s Big Three amid tense 2023 talks
How many autoworkers would strike?
The UAW represents 146,000 autoworkers across Ford, GM, and Stellantis.
The amount of autoworkers striking would depend on the way the UAW decides to strike.
Here are how many UAW-represented autoworkers are employed at each company:
- At Ford, there are more than 57,000 UAW workers.
- At GM, there are about 46,000 UAW workers.
- At Stellantis, there are about 43,000 UAW workers.
When was the last strike?
The UAW last struck in 2019, and selected GM as its target while extending contracts with Ford and then-Chrysler (which has since merged with Peugeot to create Stellantis).
The strike lasted six weeks and involved 48,000 GM autoworkers. It was the longest UAW strike since 1970.
---> Read more: UAW last went on strike in 2019: Here’s what happened, how things have changed since