BackStrike threat looms: Ford, GM and Stellantis remain at odds with UAW demands
Ford, GM, and Stellantis are still far apart from the UAW in their talks about work and pay. Strikes may worsen if no progress is made soon.
PremiumFord, GM, and Stellantis, the big automakers in Detroit, are still far apart from the United Auto Workers (UAW) in their talks about work and pay. The UAW said if they do not make progress soon, they might make the strikes at the car companies worse, reported Reuters.
Reportedly, the UAW started strikes against Ford, GM, and Stellantis last week. They stopped the car factories in Michigan, Ohio, and Missouri where they make cars like the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado.
Union representatives and company management continued their discussions on the sixth day of a planned strike. This comes after Ford successfully avoided a strike by Canadian workers.
However, there has not been much noticeable progress. Detroit automakers are increasingly clear in their refusal to accept the UAW's demands. These demands include a 40 per cent increase in pay, a 32-hour work week, and putting an end to a system where newer workers are paid less, adds the report.
"The fundamental reality is that the UAW's demands can be described in one word — untenable. As the past has clearly shown, nobody wins in a strike. We have delivered a record offer. That is a fact," said General Motors President Mark Reuss in an opinion piece published in the Detroit Free Press.
LM Manufacturing, which is based in Detroit and is a partnership between LAN Manufacturing and Magna, has announced that they have temporarily laid off 650 workers who make seats for the Ford Bronco. This decision was made because the assembly plant had to close, and it had an impact on their production.
The UAW (United Auto Workers) has stated that if significant progress isn't made in discussions with automakers by 12 p.m. EDT (1600 GMT) on Friday, they will announce strikes at more U.S. plants on that day.
Moreover, the main issues being discussed in the negotiations are how much workers will get paid and the benefits they will receive. The three automakers have suggested increasing pay by 20 per cent over a period of 4.5 years in their proposed agreements. However, this is only half of what the UAW is asking for until 2027.
Currently, around 12,700 workers are on strike due to the coordinated action by the UAW in the United States. This is out of the 146,000 UAW members who work for the Big Three automakers.
On Tuesday, Ford announced that it was preparing backup plans in case there are more work stoppages in the United States. These plans include ensuring the delivery of crucial vehicle parts, especially those needed to support first responders and essential services.
Whereas, Stellantis announced that due to the strike at a Jeep assembly plant in Toledo, Ohio, they would temporarily lay off 68 workers in Ohio and expected to furlough another 300 employees in Indiana. Stellantis also anticipates taking similar actions at Kokomo Transmission and Kokomo Casting in Kokomo, Indiana, which would affect approximately 300 more employees.
If all 146,000 UAW auto workers were to go on a complete strike and it were to last for a month, RSM estimated that it could lead to a minor 0.2% reduction in the annualized growth of the U.S. gross domestic product for this quarter.
The White House has stated that U.S. President Joe Biden wore a red tie on Wednesday as a sign of support for UAW workers. President Biden has urged automakers to make further concessions to the striking workers.
(With inputs from Reuters)
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