Labor and management target strike test for conversion to electric vehicles amid simultaneous union strike of three major U.S. automakers

Labor and management target strike test for conversion to electric vehicles amid simultaneous union strike of three major U.S. automakers

 

The U.S. auto industry is testing new labor-management relations as, for the first time in history, the United Automobile Workers' Union (UAW) negotiated an 'expansion of target strike' against the transition to electric vehicles in a simultaneous strike by three companies.
The new form of strike will close just three plants and marks a departure from previous strikes by unions, which have typically struck all plants of a single automaker.
The union's move is increasing pressure on automakers under a union bargaining arrangement that would allow most plants to remain open and most members to continue receiving salaries while halting production of some of the most profitable vehicles.
Regarding the new strike method, the New York Times said, “It is difficult for the union to limit damage to the income of union members,” and “Ford told workers at a facility in Michigan who did not participate in the strike that they would go home on the 15th due to a shortage of parts due to the strike.” “GM said it would lay off 2,000 workers at its plant in Kansas next week due to a shortage of parts produced at the plant near St. Louis, which is on strike,” the employer’s counterattack was reported on the 15th.
On the 15th, Shawn Fain, the first UAW chairman in the U.S. to be directly elected by workers, demanded a 40% wage increase over four years for the Big 3, including GM, Ford, and Chrysler owner Stellantis, saying, "If the companies do not come up with a better proposal, workers will have to raise wages." “They may go on strike at more factories,” he said, predicting an expansion of the strike when the contract expires.
About 140,000 auto workers naturally became ‘retired’ as their four-year contract expired on the 13th and a new contract failed.
About 13,000 unionized auto workers at the Big Three plants in Ohio, Michigan and Missouri went on Wednesday in what the union described as a targeted strike that could expand to more plants if their demands for up to 40% wage increases and other benefits are not met. joined in
The expiration of the union's four-year contract with the Big Three U.S. automakers - General Motors, owner of Chrysler, Jeep and Ram, Ford Motor Co. and Stellantis - has prompted the company and the union to attempt a new deal and has become a test for next year's U.S. presidential election.
The three auto owners responded by offering a 5.20 percent wage increase, and Ford told about 600 non-striking workers at the Wayne plant not to come to work on the 15th.
U.S. President Biden said on the 15th, "Auto manufacturers have made record profits, but they have not been distributed fairly to workers," and said of employers, "We must go further," and "No one wants a strike. Both sides can negotiate." “I hope we can come back to the table and reach a win-win agreement,” he dispatched an aide.
GM CEO Mary Barra appeared on CNBC on the 15th and said, “The limited strike strategy could have a ripple effect,” adding, “Many factories depend on each other for parts. “We have been working to build a very efficient manufacturing network, so even just one factory will start to have an impact.”
In response to the company's claim that vehicle prices are bound to increase due to costly agreements, Chairman Fine said, "Labor costs are only 4% to 5% of the vehicle cost," and "Automakers are raking in billions of dollars. “It is there and we can afford it,” he says.
“Many say it is time to take back concessions as the company is making huge profits and the CEO’s pay package is soaring,” the AP said. “The backdrop to the strike is a historic shift to electric vehicles, and the union is demanding that the company “On behalf of the workers at the joint venture electric vehicle battery factory, we want to ensure that our union members can have jobs making the cars of the future,” it was reported today.
The strike has now begun by 13,000 workers at three assembly plants: the GM plant in Wentzville, Missouri, the Ford plant in Wayne, Michigan, near Detroit, and the Stellantis-operated Jeep plant in Toledo, Ohio.
The United Auto Workers said in its 88-year history, the UAW has always negotiated with one automaker at a time to limit the industry-wide impact of possible work stoppages, and viewed each deal with an automaker as a template for subsequent contract negotiations. It was a structure that worked.
Contract negotiations for 13,000 workers across the three companies are currently delayed, and costs for workers and companies rise simultaneously as the strike expands and affects more plants.
This new negotiating tactic was adopted by Fein, the first union leader elected directly by workers in the union's history.
Previously, the Auto Workers union had outgoing leaders elect delegates to its convention to choose their successors, and the old system led to a culture of bribery and embezzlement that led to a federal investigation and conviction of two former UAW presidents.
Fine, the first directly elected chairman, became leader in opposition to what he called "corporate unionism," which he accused of selling out workers by failing to extract more money from automakers during last spring's factory closures.
AP said, “This strike is likely to shape the future of the union and the U.S. domestic auto industry at a time when U.S. labor is demonstrating its power and companies are facing a historic shift from producing internal combustion engine vehicles to manufacturing electric vehicles.” “It will also be an issue in next year’s presidential election, testing Biden’s claim to be the most union-friendly president in American history.”
“This is a defining moment for our generation. The money is there, the cause is righteous, the world is watching, and the UAW is ready to stand up,” Fine said in a video address on the 15th.
The new form of strike will close just three plants and marks a departure from previous strikes by unions, which have typically struck all plants of a single automaker.
The deal is a test of the union's bargaining approach, which puts pressure on automakers under the union's bargaining approach that allows most plants to remain open and most members to continue receiving salaries while halting production of some of the most profitable vehicles. climbed to In last-minute negotiations to keep assembly lines running, GM late Thursday offered unions a 20 percent raise and a cost-of-living adjustment for skilled workers.
GM's proposed 20 percent raise would be far more than workers have received in decades, but the union rejected the company's offer, saying it would not compensate for inflation.
The UAW said its request for a wage increase was roughly consistent with the compensation increases for top executives at the three companies, Ford, GM and Stellantis.
The UAW said the wage increase is "intended to compensate workers for the ground lost to inflation and the large concessions the union gave to automakers following the 2007-8 financial crisis, when GM and Chrysler were forced to reorganize in bankruptcy court." revealed.
The NYT said, “Auto executives say they are already paying their production workers much more than competitors like Tesla and Toyota, which do not have unionized U.S. workers,” and added, “The company believes the demand for such a large increase will slow down its efforts to develop electric vehicles. “We argue that it will undermine and maintain relevance as the industry makes the difficult and costly transition from gasoline-powered cars and trucks to electric vehicles.”

The Financial Times revealed on the 16th that the GM-LG Energy Solutions joint venture's battery plant in Ohio has non-union workers unrelated to UAW collective bargaining, and that Ultium Cells workers, a GM=LG Ensol joint venture, have lower wages than the big three UAW union members.
The UAW strike is demanding an increase in wages at the union level at battery factories that Korea entered with U.S. federal subsidies due to the low wage system for non-union workers during the transition to electric vehicles.