The United Auto Workers (UAW) has signaled its intention to intensify its standup strike approach if negotiations with major automakers fail to advance, with presidential politics now woven into the equation.
In a video statement released by the UAW late Monday, union president Shawn Fain emphasized that if Ford, GM, or Stellantis fail to demonstrate “substantial progress” towards a fresh labor agreement by noon on Friday, September 22nd, the UAW would broaden its standup strike to additional locations.
Fain asserted, “That will mark more than a week since our first members walked out. And that will mark more than a week of the Big Three failing to make progress in negotiations toward reaching a deal that does right by our members.”
The UAW refrained from specifying which factories or facilities would be affected, leaving uncertainty regarding the fate of workers currently striking at GM’s Wentzville Assembly, Stellantis’ Toledo Assembly, and Ford’s Michigan Assembly, as to whether they will return or remain on the picket line.
Automakers maintain they have been ready to negotiate at the bargaining table. Stellantis confirmed on Monday that it is actively engaged in discussions with the UAW following its recent contract proposal submission.
Stellantis revealed an enhanced offer, presenting an immediate 10% pay hike, with wages escalating by 21% throughout the contract term. Although tiered structures would persist, Stellantis pledged to reduce the time frame for union members to reach the highest wage from eight years to four. Additionally, Stellantis proposed an “inflation protection measure” without specifying further details.
GM has not provided a public update on its ongoing negotiations since September 14th, just prior to the commencement of the stand-up strikes. Similarly, Ford has not released new information, but indicated on Tuesday its willingness to continue negotiations with autoworkers in Canada beyond the September 18, 11:59 p.m. ET deadline of the current agreement.
As the strike extends into its fifth day, the reverberations are impacting other segments of the auto industry. Component manufacturer CIE Newcor in Michigan indicated the possibility of laying off nearly 300 employees. German automotive powerhouse ZF confirmed it has initiated layoffs at specific Michigan locations. Furthermore, US Steel disclosed the idling of one of its furnaces at an Illinois steel plant as part of a “risk mitigation” strategy.
Political tensions are surging for President Joe Biden, with Michigan Democrats urging the president to bolster his base in this pivotal state. This appeal intensifies, especially as former President Donald Trump plans a rally with autoworkers this week.
Michigan State representative Donavan McKinney urged, “President Biden can take over the narrative and show that the administration, and Democrats as a whole, are supporting their biggest base, which are unions and the working class.” McKinney expressed apprehension over Trump’s rally in Michigan before Biden’s potential visit.
Biden remarked last week, asserting that “record corporate profits mean record contracts for the UAW.” The pressing question now is to what extent the president will go to affirm his support for this message, while joining the picket line may pose a political challenge.
In response, Trump voiced solidarity with union workers but criticized union leadership. He contended, “The auto workers are being sold down the river by their leadership, and their leadership should endorse Trump.” Trump underscored concerns about the shift toward electric vehicles and China’s ascendancy in EV manufacturing, warning of potential job loss for UAW members.
While the UAW grapples with its own concerns regarding Biden’s electric vehicle initiative and ensuing loans for EV and battery plant construction, UAW’s Fain refrained from endorsing Trump, stating, “We can’t keep electing billionaires and millionaires that don’t have any understanding what it is like to live paycheck to paycheck and struggle to get by and expecting them to solve the problems of the working class.”
Source: Yahoo Finance
