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More than 12,000 employees of General Motors, Stellantis and Ford – three of the largest automobile assemblers in the United States – went on strike on Friday, September 15. In its first simultaneous action in history, its unionized workers demand better conditions in their contracts.
This Monday, September 18, talks continue in the United States to end a tripartite strike never seen before, with requests never seen before.
Last Friday, more than 12,000 workers from the United Auto Workers (UAW) union, which represents the interests of unionized workers at General Motors, Ford and Stellantis, went into cease operations at three assembly plants after the most recent expiration four-year agreement.
They demand, among others, a salary increase of around 40%, something considered “unsustainable” by the car manufacturers who have proposed half of that increase for four and a half years. At one point during the talks, the UAW offered to reduce its demand to 36%.
Despite the enormous differences and after weeks of failed negotiations, the parties are seeking an end to one of the most ambitious industrial labor actions in that country in decades.
UAW President Shawn Fain said Sunday that “we are prepared to do whatever we have to do. So the union members are ready. And they are fed up. Fed up with being left behind.”
“These companies have made a quarter of a trillion dollars in the last ten years, $21 billion in the last six months alone. And our workers’ wages and conditions have gone backwards,” he added.
“Unsustainable demands,” employers denounce
In addition to higher wages, the UAW also calls for 32-hour work weeks, the restoration of pensions with additional benefits and greater job security as automakers transition to electric vehicles.
Ford CEO Jim Farley has said his company’s offer is the most generous made in 80 years. GM CEO Mary Barra agrees with him, who on Friday declared that her company’s proposal to assume a 20% salary increase is “very competitive” and “historic.”
Watch Mary Barra and Gerald Johnson share their perspectives on our record economic proposal for #UAW-represented team members.
— General Motors Manufacturing (@MFG_GM) September 14, 2023
United States President Joe Biden has expressed his support for the efforts of the UAW and has brought some of its officials to participate in talks to end a strike that occurs at a time when the unions’ approval is at its highest point in decades.
Impacts transcend borders
The economic impact of the strike is estimated by analysts at around $500 million a day, and Ford indefinitely laid off 600 non-striking workers at its Michigan Bronco plant due to the impact of the work stoppage.
Beyond the US border, representatives of the Mexican auto parts industry, the main supplier to the United States, are taking stock of the impact on their business. And in Australia, shares in steelmaker BlueScope Steel fell to a more than three-month low on Monday, September 18, as almost half of its revenue comes from North America.
Strikes have halted production at assembly plants in Michigan, Ohio and Missouri that produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, along with other popular models.
However, analysts expect plants that make more profitable trucks like Ford’s F-150, GM’s Chevy Silverado and Stellantis’ Ram to be the next targets of the strike if talks fail.
With Reuters, EFE, AP and local media
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