DETROIT – The United Auto Workers’ strike against Detroit’s Big Three automakers entered its fourth week on a much more positive note Monday after negotiations made decent progress last week.
On Friday, Oct. 6, UAW President Shawn Fain decided not to expand the union’s strike at General Motors, Ford Motor Company and Stellantis like he had done the two Fridays prior. According to the union chief, the carmakers have been moving closer to the union’s aggressive list of demands, with GM making a big offer on Friday to avoid additional strikes.
Here’s what to know this week.
GM’s EV offer
The UAW president announced Friday that GM had agreed, in writing, to include electric vehicle battery production in its national agreement with the union -- a significant win for autoworkers concerned for their futures amid the nation’s shift to EVs.
As local and national officials encourage automakers to transition to EV production as part of clean energy initiatives, current autoworkers have been concerned about being left behind. EVs require fewer people to make them, though those workers require more thorough training. But EVs haven’t been included in the Big Three’s contracts with the UAW, creating worry over job security.
So far, only GM has agreed to incorporate EV battery production in its UAW contract, but Fain said that the agreement still changes the “future of the union and the industry.”
In a statement sent out Sunday, Ford officials said the company remains “open to the possibility of working with the UAW on future battery plants” in the U.S., but did not say the company would offer a proposal similar to GM’s. Instead, Ford said employees have not yet been hired at three of their four known battery plants, where future employees “can choose to be union represented and enter the collective bargaining process.”
Ford reiterated that none of their existing employees would lose their jobs because of EV battery plants “during this contract period.”
Stellantis did not mention EVs in their latest negotiations update, but did say that negotiations were progressing and that leaders remain optimistic.
Each of the Big Three have made several offers to the UAW, and none have been accepted as of Monday. Negotiations continue this week.
No strike expansion last week
The UAW is taking a different approach to striking during this year’s negotiations, targeting strikes at increasingly valuable facilities in an effort to create leverage with the automakers. The strike began at three locations, one for each company, with about 13,000 workers, and has since expanded to about 25,000 workers at 43 facilities across the country.
The union has been expanding its strike each week since the historic strike began on Sept. 15, but UAW President Fain opted to not expand the strike last week at all. In a live social media announcement, Fain said Friday that he was preparing to announce another strike at GM’s Arlington Assembly facility in Texas -- the company’s “biggest money maker” -- but didn’t due to GM’s EV agreement.
Here’s a map of the 43 locations where UAW autoworkers were on strike as of Monday:
Just because the strike didn’t expand last week doesn’t mean it won’t this week, however. The UAW president has been providing weekly updates on negotiations, and has taken that time to announce additional strike locations if he thinks bargaining didn’t progress enough that week.
So far, the UAW hasn’t yet announced whether there will be another Friday update this week, though it’s likely there will be. What will be shared during that announcement, though, is unknown.
The union president has maintained that autoworkers will strike for as long as necessary to achieve a “record contract.” By targeting strikes, the union is able to stretch out its strike fund that pays picketers while they aren’t working.
Record contract?
This year, UAW leaders have been pushing the same message: The carmakers’ “record profits” should mean “record contracts” for autoworkers.
According to the UAW, the Big Three automakers have amassed a combined total of $21 billion in profit in the first half of 2023, and a combined $250 billion in American profits in the last 10 years. The union argues those “record” profits made in the years after the financial crisis should translate to better compensation for autoworkers, who they say made sacrifices to help the companies stay afloat then.
But the Big Three, each of which has presented multiple counter proposals to the UAW, say their latest offers would be considered “record contracts.” Though the automakers haven’t agreed to the UAW’s request of a 36% wage increase, the companies have upped their offers to around a 20% wage increase.
“Ford’s highest full-year North America adjusted [earnings before interest and taxes] -- the most meaningful measure of the underlying profitability of our business -- since 2008 was in 2013, 2015 and 2016 -- 10, eight and seven years ago. The contract we’re offering would be record pay,” a statement read Sunday.
Leading up to last Friday, each of the automakers had made several offers to the union: GM made six offers and Ford made seven, while the exact number proposed by Stellantis wasn’t clear. In addition to wage increase percentages, both sides say they’re getting closer on other key issues and benefits, as well.
Ford agreed to restore a cost of living allowance and eliminate wage tiers in their seventh offer that was made last week. Stellantis agreed to restore COLA if inflation exceeds 3%, and to eliminate wage tiers in their parts servicing and customer care division.
In GM’s fifth offer made on Sept. 21, the company reportedly had not agreed to restore a cost of living allowance or to end wage tiers, two of the union’s most prominent demands. Fain said Friday that GM is not far behind the other two carmakers when it comes to COLA.
As the auto industry rebounds after pandemic-related problems, particularly related to the supply chain, automakers say their higher profits are needed amid their massive and expensive investment in the shift toward EVs. The carmakers say they are looking to reach an agreement that is sustainable amid such investments.
Strike locations as of Monday
Here’s a list of the auto facilities where UAW workers were on strike as of Monday, Oct. 9, 2023.
GM
- Wentzville Assembly
- Davison Road Processing Center
- Flint Processing Center
- Lansing Redistribution
- Pontiac Redistribution
- Willow Run Redistribution
- Ypsilanti Processing Center
- Chicago Parts Distribution
- Cincinnati Parts Distribution
- Hudson, Wisconsin Parts Distribution
- Denver Parts Distribution
- Reno Parts Distribution Center
- Rancho Cucamonga Parts Distribution
- Fort Worth Parts Distribution
- Martinsburg, West Virginia Parts Distribution
- Jackson, Mississippi Parts Distribution
- Charlotte, North Carolina Parts Distribution
- Memphis AC Delco Parts Distribution
- Philadelphia Parts Distribution
- Lansing Delta Township plant
Stellantis
- Toledo Assembly Complex
- Centerline Packaging
- Centerline Warehouse
- Marysville
- Sherwood (Warren)
- Warren Parts
- Quality Engineering Center (Auburn Hills)
- Romulus
- Chicago
- Cleveland
- Milwaukee
- Minneapolis
- Denver
- Los Angeles
- Portland, Oregon
- Atlanta
- Winchester, Virginia
- Orlando
- Dallas
- New York
- Boston
Ford
- Michigan Assembly Plant (final assembly and paint only)
- Chicago Assembly Plant