Negotiations between the United Auto Workers (UAW) and the Big Three automakers—Ford, General Motors, and Stellantis—are coming down to the wire as the union’s current contract is set to expire at 11:59 p.m. on Sept. 14.
As all sides engage in tense talks, the UAW leadership has threatened that 140,000 workers could go on a full or partial strike, potentially harming the U.S. economy and threatening President Joe Biden’s clean energy objectives.
On CNBC on Sept. 13, UAW President Shawn Fain said the three large U.S. automakers “could double ... wages, not raise the price of vehicles, and still make billions in profits.” He confirmed that the union is still seeking 40 percent pay hikes.
“We can get there, but the companies need to get serious and buckle down,” Mr. Fain told the business news network. “We have a lot of work to do in 48 hours.”
In addition to the double-digit pay increase, the UAW is demanding a four-year contract that includes a 32-hour workweek with 40 hours of pay and the restoration of traditional pensions.
Officials and market observers are closely watching the situation, with Sen. Gary Peters (D-Mich.) saying he hopes that the UAW and the Big Three continue negotiations so that workers can receive a contract that gives them the wages, benefits, and job security that “they deserve as soon as possible.”
“I’ve met with and have been in constant communication with UAW members, including UAW President Shawn Fain, and representatives from the Big Three auto manufacturers, and I’m hopeful that both parties will continue to negotiate in good faith towards a fair contract,” Mr. Peters said in a statement.
Dan Ives, an analyst at Wedbush Securities, said he thinks a strike is “very likely to now happen” as the sides “appear far apart.”
“This is a potential nightmare situation for GM and Ford as both 313 stalwarts are in the early stages of a massive EV transformation,” Mr. Ives wrote on X, formerly known as Twitter, on Sept. 11.
Big Three Offers
Ford announced on Sept. 7 that close to 8,000 UAW-represented employees were fast-tracked to receive an average pay increase of $4.33 per hour, or roughly $9,000 per year. With overtime, the annual pay hike could exceed $10,000.“These pay raises are an example of Ford’s commitment to improving the lives of our hourly workforce,” Bryce Currie, Ford’s vice president of manufacturing, said in a statement. “The negotiating teams nicknamed this deal ‘23 Jump Street’ because in 2023, a significant number of UAW-Ford team members would see a jump in pay. And we are offering further improvements in the next contract.”
But Mr. Fain said in a Facebook Live session that the UAW demands full-time employment for temporary workers after 90 days, full health care and retirement benefits, and profit sharing.
GM President Mark Reuss wrote in a letter to workers last week that “our offer includes well-deserved wage improvements that far exceed the 2019 agreement and reward you for your hard work.”
The offer also extends two extra 3 percent lump-sum payments, a $6,000 one-time inflation-recognition payment, $5,000 inflation-protection bonuses over the lifetime of the agreement, a $5,500 ratification bonus, and a recognition of Juneteenth as a paid holiday.
Mr. Fain called this offer “insulting.”
“After refusing to bargain in good faith for the past six weeks, only after having federal labor board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” he said in a statement. “GM either doesn’t care or isn’t listening when we say we need economic justice at GM by 11:59 p.m. on September 14th. The clock is ticking. Stop wasting our members’ time. Tick tock.”
Chrysler-maker Stellantis proposed a 14.5 percent general wage increase over four years and that new workers would receive a 27 percent boost to their starting wages. The company also offered a one-time $6,000 inflation protection payment in the first year of the deal and would make Juneteenth a paid holiday for UAW-represented workers.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” said Mark Stewart, chief operating officer of Stellantis’s North America unit. “It also protects the Company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”
The Biden EV Dream
President Biden has called himself the “most pro-union president in history.” With various federal and state legislative efforts handing out billions of dollars in corporate subsidies, companies have emphasized building electric cars and constructing battery plants.
The White House aims for electric vehicles to have a 50 percent share of sales by 2030.
Autoworkers fear that the current administration’s initiative could leave them vulnerable to receiving pink slips in the future. The chief concern is that constructing electric vehicles requires few workers and that batteries are built in nonunion factories with lower pay.
This could cause a rift between Democrats and the UAW.
Despite most of the large labor unions endorsing President Biden’s 2024 reelection campaign, the UAW has refrained from announcing an endorsement. Mr. Fain hasn’t indicated whether he plans to support former President Donald Trump, but the real estate billionaire mogul has been courting autoworkers in his criticism of electric cars.
“The Great State of Michigan will not have an auto industry anymore,” Mr. Trump wrote on Truth Social. “United Auto Workers, VOTE FOR TRUMP.
“Mexico & Canada LOVE Biden’s idiotic policy. SAVE MICHIGAN and the other Auto States. SAVE THE AMERICAN CONSUMER!!!”
In 2016, the former president won Michigan by nearly 11,000 votes. Four years later, he lost the state by more than 100,000.
