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2023 United Auto Workers strike

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2023 United Auto Workers strike
File:UAW Stand-Up Strike.jpg
Striking workers marching in Detroit in September 2023
DateSeptember 15, 2023 – present (2023-09-15 – present)
(1 year, 3 months and 3 days)
Location
United States
Caused byDisagreements over the terms of a new labor contract
Goals
  • Increased wages over four years to offset inflation
  • End to the tiered employment system
  • Improved overtime and retirement benefits
  • Improved worker protections against plant closures[1]
  • 32-hour work week.[2]
Methods
Parties
Number
18,300 strikers
(as of Sept. 22)

The 2023 United Auto Workers strike is an ongoing labor strike involving automobile workers in the labor union United Auto Workers (UAW) and the three unionized automakers in the United States—Ford Motor Company, General Motors, and Stellantis. These three automakers' factories combined employ about 145,000 UAW members and produce about 50% of the vehicles manufactured annually in the US, accounting for 1.5% of US GDP.[3][4] The strike began on September 15, 2023, when the union was unable to reach a deal with the three automakers. It is the first trilateral strike against the three automakers in the union's history.

The hardline stance taken by the newly elected UAW president Shawn Fain contributed to the UAW's decision to strike. In particular, he has criticized stagnant wages that do not account for inflation and has called for the end of a tiered employment system that underpays newer employees, the restoration of overtime and retirement benefits that were lost as a result of the 2007–2008 financial crisis, the institution of a four-day workweek, and improved worker protections against plant closures as electric vehicle production increases.

They strikers have resorted to twerking in the intersection for money to pay their Porn addiction.

A central concern for the automakers is the cost of labor relative to domestic and foreign non-union competitors, particularly as the industry transitions to electric vehicle manufacturing.[5] The automakers have stated that they anticipate to need to invest large amounts of their profits from gas cars into new production technology.[6]

Background

United Auto Workers

Main article: United Auto Workers

The labor union United Auto Workers (UAW) represents approximately 145,000 automobile workers employed at Ford Motor Company, General Motors, and Stellantis.[7] To achieve its goals, UAW has engaged in strike action; from November 1945 to March 1946, UAW went on strike against General Motors. The 1945—1946 strike established a strategy, forged by then-UAW president Walter Reuther, to target efforts on a single company. Since the 1950s, UAW has faced declining union membership and a growing service sector, reducing the economic impact that a strike could have.[8] In 2019, UAW autoworkers went on strike against General Motors. The 40-day work stoppage cost General Motors US$3.6 billion and caused a single-quarter recession in Michigan.[9]

Contract negotiations

In March 2023, newly elected UAW president Shawn Fain stated that workers were "fed up with the status quo" and assured that he would negotiate for changes to workers' contracts. Fain called for cost of living adjustments to account for inflation ahead of the current contracts expiring on September 14 and asked for wage increases lost in the 2007–2008 financial crisis.[10] Members have expressed interest in both ending a two-tier wage system in which newer employees are paid significantly less than older employees, and domestic plant construction.[11] Fain continued his sentiments at the Automotive Press Association in April, expressing disappointment in the idling of the Belvidere Assembly Plant in Belvidere, Illinois.[12] Additionally, he lambasted wage decreases that workers at joint venture battery factories face compared to workers at older factories.[13]

By May 2023, the potential for a strike loomed over contract talks.[14] In an online appearance in June, Fain repeated his goals and criticized automobile manufacturers for increasing their profits without increasing wages.[15] Fain continued to leave strike action as a possible option leading up to contract negotiations.[16] Contract negotiations began on July 14.[17] Throughout negotiations, Fain has updated members online, including throwing one automaker's proposal in the trash on camera.[18] On August 15, Fain announced a strike vote;[19] it overwhelmingly passed on August 27 with 97% voting in favor.[20] UAW has asked for an immediate 20% raise and yearly gradual increases totaling an hourly pay increase of 46%, the restoration of traditional pension payment plans and retiree health care, a four-day workweek, job protections, and a beneficial transition to electric vehicles.[21] Fain has acknowledged the UAW demands are audacious but argues they are justified, pushing for the reversal of post-2007 wage cuts.[22]

Course of the strike

On September 14, Fain declared that the UAW would simultaneously strike against Ford Motor Company, General Motors, and Stellantis for the first time in the union's history. The initial strike is focused on the Michigan Assembly Plant in Wayne, Michigan—owned by Ford Motor Company, the Toledo Complex in Toledo, Ohio—owned by Stellantis, and Wentzville Assembly in Wentzville, Missouri—owned by General Motors.[23] Approximately 13,000 workers are going on strike as of September. The initially limited scope is intended by the union to stretch the strike fund.[24] The three plants were chosen for their profitability.[25][26]

On September 19, Fain set a new deadline for contract talks. If by Friday, September 22, contract negotiations did not progress significantly, a new set of plants would join the strike.[27] This strategy has been dubbed by Fain a "stand-up" strike, where workers at additional plants will join the strike if talks do not progress.[28] This strategy has been referred to as a new form of rolling strike,[29] in which portions of a company or industry strike at different points, rather than striking all at once.[30][31] Typically, sections are targeted periodically, moving between workplaces without expanding.[30][31] While in this case the strike is expected to continually expand from workplace to workplace.[29]

On September 22, strikes expanded with 5,600 workers walking out of 38 part-distribution plants operated by Stellantis and GM.[32] The strike did not include any Ford operated facilities, with Fain stating: “We’ve made some real progress at Ford. We ... want to recognize that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it’s a different story.”[33] Fain also invited President Biden to show solidarity saying, "We invite and encourage everyone who supports our cause to join us on the picket line from our friends and families all the way up to the President of the United States."[34] Hours later, Biden announced his intent to visit Michigan on the 26th, "to join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create".[35]

General Motors net income and
Trailing 12 months net income
Ford Motors net income and
Trailing 12 months net income
Stellantis net income 2014 - 2020 and
Trailing 12 months net income

Transition to electric vehicles and claims of competitiveness

Automakers claim that they need to transition to building electric vehicles to meet government regulations and to remain competitive, and that this transition will require re-investing billions of dollars of their profits.[36] Ford stated that for 2023 it would lose $4.5 billion dollars in its EV business.[6]

Foreign, legacy manufacturers and domestic manufacturers which produce only electric vehicles, such as Tesla, Rivian, and Lucid produce their vehicles with non-union workforce. Labor costs for EV-only Tesla are $45/hour. The second largest automaker, Toyota, has a labor cost of $55/hour.[3] The current UAW labor costs are $65/hour.[37] Wells Fargo estimates that the proposed contract by the UAW would raise the average labor cost to $136/hour.[38] Ford, GM, and Stellantis claim that the proposed UAW contract would prevent them from being competitive in the transition to EVs and competing against foreign automakers.[39]

In 2022, president Joe Biden's administration passed the Inflation Reduction Act, which included federal funding and tax incentives for domestic EV manufacturing. Ronald Brownstein of The Atlantic reported that union officials "worry that the companies are using the shift ... to simultaneously shift more of their operations from high-paying union jobs mostly in northern states to lower-paying, nonunion jobs mostly in southern states".[40] Fain asserts that, with the government incentives, "hundreds of billions of our taxpayer dollars ... are helping fund this, and workers cannot continue to be left behind in that equation".[41] Both foreign and domestic automakers are eligible for the IRA tax credits as long as their cars are built in Mexico, USA, or Canada. Many foreign carmakers are considering expanding their non-union North American operations to continue receiving the IRA credits. [42]

Reactions

Politicians

The strike poses a risk to president Joe Biden's commitment to electric vehicles; Biden is running for reelection. Biden's automotive industry liaison Gene Sperling stated that, while he remains committed to electric vehicles, Biden will ensure a "just transition" for union members.[43] On the day of the strike, Biden called for an amelioration with "record contracts" matching "record corporate profits".[44] Senator Bernie Sanders called on the CEOs of Ford Motor Company, General Motors, and Stellantis to "end [their] greed", addressing them by name.[45] Donald Trump criticized the Biden administration's electric car policy saying "UAW workers being sold down the river by the union in favor of green agenda".[46] Senator and 2024 presidential candidate Tim Scott compared the strikes to the 1981 strikes organized by the Professional Air Traffic Controllers Organization and praised former President Ronald Reagan's approach, stating: "He said, you strike, you're fired. Simple concept to me".[47] Fain later filed a complaint against Scott with the National Labor Relations Board on the grounds that, as the employer of campaign staff, his statements reflected a threat against his workers' right to strike and violated the National Labor Relations Act.[48]

Automakers

Ford CEO Jim Farley said that if the UAW proposal had been in effect since 2019, Ford would be bankrupt.[49] In response, Fain stated "The cost of labor for a vehicle is 5% ... They could double our wages and not raise the prices ... and they would still make billions of dollars. It's a lie like everything else that comes out of their mouths."[50]

Others

In an opinion article, Steven Rattner, who served on Obama's Presidential Task Force on the Auto Industry during the government's restructuring of GM and Chrysler associated with their 2008 bankruptcies, stated that while he feels that the auto workers should get raises, they are asking for too much from an industry with thin profit margins that has stagnated relative to the growth of the overall economy.[51]

References

  1. ^ Whalen, Jeanne (September 14, 2023). "What are the UAW strike demands? Here are the issues amid negotiations". The Washington Post. Archived from the original on September 15, 2023. Retrieved September 14, 2023.
  2. ^ Shepardson, David (September 14, 2023). "UAW nears strike at Detroit Three as Ford blasts union". Reuters. Archived from the original on September 14, 2023. Retrieved September 15, 2023.
  3. ^ a b Eckert, Nora; Felton, Ryan (September 15, 2023). "UAW Goes on Strike Against GM, Ford and Stellantis". Wall Street Journal. Archived from the original on September 18, 2023. Retrieved September 18, 2023. Economists are weighing the fallout from a potential labor disruption at GM, Ford and Stellantis, which combined produce about half of the roughly 15 million vehicles made in the U.S. annually.
  4. ^ Whalen, Jeanne (September 15, 2023). "How much do UAW workers make? What to know about today's strikes". The Washington Post. The stoppage threatens to destabilize an industry that makes up about 3 percent of the nation's gross domestic product.
  5. ^ Higgins, Tim (September 16, 2023). "Whatever the UAW Strike Outcome, Elon Musk Has Already Won". The Wall Street Journal. Archived from the original on September 18, 2023. Retrieved September 19, 2023.
  6. ^ a b Ewing, Jack (September 16, 2023). "Battle Over Electric Vehicles Is Central to Auto Strike". The New York Times. ISSN 0362-4331. Archived from the original on September 19, 2023. Retrieved September 18, 2023. But the talks are about more than pay. Workers are trying to defend jobs as manufacturing shifts from internal combustion engines to batteries. Because they have fewer parts, electric cars can be made with fewer workers than gasoline vehicles. ... Under pressure from government officials and changing consumer demand, Ford, G.M. and Stellantis are investing billions to retool their sprawling operations to build electric vehicles, which are critical to addressing climate change. But they are making little if any profit on those vehicles while Tesla, which dominates electric car sales, is profitable and growing fast.
  7. ^ Isidore, Chris (September 11, 2023). "UAW president says auto strike would hurt mostly 'billionaire class'". CNN. Archived from the original on September 12, 2023. Retrieved September 13, 2023.
  8. ^ Hiltzik, Michael (September 13, 2023). "Why an auto workers strike should have your support". Los Angeles Times. Archived from the original on September 14, 2023. Retrieved September 13, 2023.
  9. ^ Cheung, Brian (September 8, 2023). "Potential UAW strike: Where labor talks stand and what's at stake". NBC News. Archived from the original on September 12, 2023. Retrieved September 13, 2023.
  10. ^ White, Joseph; Shepardson, David (March 27, 2023). "New UAW leader tells automakers: 'Our membership is fed up'". Reuters. Archived from the original on August 22, 2023. Retrieved September 13, 2023.
  11. ^ Boudette, Neal (March 27, 2023). "United Auto Workers Usher In New Era of Leadership". The New York Times. Archived from the original on September 12, 2023. Retrieved September 13, 2023.
  12. ^ Krisher, Tom (April 21, 2023). "New UAW leader already has issues with Detroit automakers". Associated Press. Archived from the original on July 31, 2023. Retrieved September 13, 2023.
  13. ^ White, Joseph (April 21, 2023). "UAW President: 'No excuse' for Detroit's non-union EV operations". Reuters. Archived from the original on September 1, 2023. Retrieved September 13, 2023.
  14. ^ Guillen, Joe (May 25, 2023). "Potential for strike looms over upcoming UAW contract talks". Axios. Archived from the original on July 18, 2023. Retrieved September 13, 2023.
  15. ^ Krisher, Tom (June 16, 2023). "New UAW President Shawn Fain issues strongest warning yet about strikes against 3 Detroit automakers". Associated Press. Archived from the original on September 7, 2023. Retrieved September 13, 2023.
  16. ^ Yurkevich, Vanessa; Egan, Matt (July 12, 2023). "UAW head says it's prepared to strike against Big Three automakers as negotiations start Thursday". CNN. Archived from the original on September 17, 2023. Retrieved September 13, 2023.
  17. ^ Boudette, Neal (July 14, 2023). "Autoworkers Open Contract Talks in a Fighting Mood". The New York Times. Archived from the original on September 4, 2023. Retrieved September 13, 2023.
  18. ^ Whalen, Jeanne; Kaori Gurley, Lauren (August 18, 2023). "The tough-talking union leader guiding autoworkers to the brink of a strike". The Washington Post. Retrieved September 13, 2023.
  19. ^ Lawrence, Eric (August 15, 2023). "UAW strike vote announced, authorization expected amidst tense negotiations". USA Today. Archived from the original on August 25, 2023. Retrieved September 13, 2023.
  20. ^ White, Joseph; Shepardson, David; Tiwary, Shivansh (August 27, 2023). "UAW votes overwhelmingly to authorize strike at Detroit Three automakers". Reuters. Archived from the original on September 7, 2023. Retrieved September 13, 2023.
  21. ^ Isidore, Chris (September 11, 2023). "The 4 key reasons why the UAW could strike GM, Ford and Stellantis this week". CNN. Archived from the original on September 12, 2023. Retrieved September 13, 2023.
  22. ^ Krisher, Tom. "Here's why the UAW is striking for a 32-hour week with 40 hours of pay". Fortune.com. Associated Press. Archived from the original on September 15, 2023. Retrieved September 15, 2023.
  23. ^ Boudette, Neal (September 14, 2023). "U.A.W. Goes on Strike Against Detroit's Big 3 Automakers". The New York Times. Archived from the original on September 15, 2023. Retrieved September 14, 2023.
  24. ^ Krisher, Tom; Williams, Corey; Householder, Mike (September 14, 2023). "About 13,000 workers go on strike seeking better wages and benefits from Detroit's three automakers". Associated Press. Archived from the original on September 15, 2023. Retrieved September 13, 2023.
  25. ^ Eckert, Nora; Felton, Ryan (September 16, 2023). "UAW's Strike Strategy: Start Small and Keep 'Em Guessing". The Wall Street Journal. Archived from the original on September 15, 2023. Retrieved September 16, 2023.
  26. ^ Borney, Nathan (July 25, 2023). "GM says profits are booming, but UAW strike could reverse the tide". Axios. Archived from the original on August 16, 2023. Retrieved September 13, 2023.
  27. ^ Hsu, Andrea (September 19, 2023). "UAW strike Day 5: New Friday deadline set, in latest turn in union strategy". NPR. Archived from the original on September 19, 2023. Retrieved September 19, 2023.
  28. ^ Winsor, Morgan; Zaki, Zunaira (September 19, 2023). "UAW president sets Friday deadline for more strike action unless 'serious progress' made". ABC News. Archived from the original on September 19, 2023. Retrieved September 19, 2023.
  29. ^ a b "Stateside Podcast: UAW rolls out new strike strategy". Michigan Radio. Archived from the original on September 20, 2023. Retrieved September 19, 2023.
  30. ^ a b "Ways to Strike". Labor Notes. October 17, 2019. Archived from the original on July 3, 2023. Retrieved September 19, 2023.
  31. ^ a b Wutschke, Marc. "Hotel Workers Have Been Carrying Out Rolling Strikes Across Southern California". jacobin.com. Archived from the original on August 10, 2023. Retrieved September 19, 2023.
  32. ^ "UAW expands auto strike to GM and Stellantis parts distribution centers across country". The Detroit News. Retrieved September 22, 2023.
  33. ^ Koenig, David (September 22, 2023). "Auto workers expand their strike to 38 locations in 20 states. Biden plans visit to show support". AP News. Retrieved September 23, 2023.
  34. ^ Chao-Fong, Léonie. "UAW president invites Joe Biden to join picket line as General Motors and Stellantis face new strikes - live".
  35. ^ Kimball, Christina Wilkie,Spencer (September 22, 2023). "Biden will travel to Michigan to 'join the picket line' with UAW workers on strike". CNBC. Retrieved September 23, 2023.{{cite web}}: CS1 maint: multiple names: authors list (link)
  36. ^ Eckert, Nora (January 25, 2022). "GM Plans Multibillion-Dollar EV Push With Michigan Plants". The Wall Street Journal. ISSN 0099-9660. Archived from the original on November 1, 2022. Retrieved September 18, 2023.
  37. ^ Eckert, Nora; Felton, Ryan (September 19, 2023). "UAW Threatens to Widen Strike as Talks Resume in Detroit". The Wall Street Journal. Archived from the original on September 20, 2023. Retrieved September 20, 2023.
  38. ^ Higgins, Tim. "Whatever the UAW Strike Outcome, Elon Musk Has Already Won". WSJ. Archived from the original on September 18, 2023. Retrieved September 18, 2023.
  39. ^ Eckert, Nora; Felton, Ryan (September 15, 2023). "UAW Goes on Strike Against GM, Ford and Stellantis". The Wall Street Journal. Archived from the original on September 18, 2023. Retrieved September 18, 2023.
  40. ^ Brownstein, Ronald (September 15, 2023). "The Real Issue in the UAW Strike". The Atlantic. Archived from the original on September 17, 2023. Retrieved September 18, 2023.
  41. ^ "'Abandoned by the Democratic Party': Behind the UAW's frustrations with Biden". POLITICO. September 13, 2023. Archived from the original on September 20, 2023. Retrieved September 18, 2023.
  42. ^ Waldersee, Victoria; Waldersee, Victoria (February 24, 2023). "Audi mulls U.S. plant as IRA subsidies draw carmakers". Reuters. Retrieved September 26, 2023.
  43. ^ Scheiber, Noam (September 13, 2023). "Standoff Over Electric Vehicle Workers Poses Risk for Biden". The New York Times. Archived from the original on September 13, 2023. Retrieved September 13, 2023.
  44. ^ Sherman, Natalie (September 15, 2023). "UAW strike: Biden says striking car workers deserve 'fair share'". BBC News. Archived from the original on September 15, 2023. Retrieved September 15, 2023.
  45. ^ Delouya, Samantha (September 15, 2023). "Sen. Bernie Sanders calls on auto CEOs to "end your greed"". CNN. Archived from the original on September 15, 2023. Retrieved September 15, 2023.
  46. ^ Robertson, Nick (September 15, 2023). "Trump: UAW workers 'being sold down the river'". The Hill. Retrieved September 17, 2023.
  47. ^ Habeshian, Sareen (September 21, 2023). "UAW files labor board complaint over Tim Scott's remarks on firing workers". Axios. Retrieved September 25, 2023.
  48. ^ Egwuonwu, Nnamdi (September 22, 2023). "UAW president files complaint against Tim Scott over 'you strike, you're fired' remark". NBC News. Retrieved September 23, 2023.
  49. ^ "Ford CEO says UAW proposal could force bankruptcy". Reuters. September 14, 2023. Archived from the original on September 18, 2023. Retrieved September 18, 2023.
  50. ^ Isidore, Chris (September 15, 2023). "UAW president on Ford's bankruptcy threat: "It's a joke"". CNN. Archived from the original on September 18, 2023. Retrieved September 19, 2023.
  51. ^ Rattner, Steven (September 20, 2023). "The United Auto Workers Is Overplaying Its Hand, Risking Our Economy and the Election". New York Times. Yes, profits at the Detroit Three are at record levels — $37 billion last year. But the auto industry usually operates at thin margins, and even though labor costs are a relatively small fraction of the companies' overall expenses, those profits can evaporate quickly. Financial markets are acutely aware of the large-scale challenges facing the Detroit companies. General Motors' stock price has been essentially flat since the company went public nearly 13 years ago, while the overall equity market has appreciated by 276 percent.
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