In just a month’s time, the contracts between the United Auto Workers union and the Detroit automakers – General Motors, Ford, and Stellantis – are set to expire. With negotiations moving slowly and economic issues yet to be addressed, tensions are rising. Union President Shawn Fain has set high expectations for the contract talks, demanding more than 40 percent general pay raises over four years, restoration of pensions for newer hires, an end to wage tiers, and other benefits. Fain has made it clear that the union is prepared to strike if necessary to achieve these goals. As the clock ticks down, approximately 146,000 UAW members will vote next week on authorizing their leaders to call strikes against the automakers. This vote, a routine part of contract talks, will play a crucial role in determining the future of labor relations in the auto industry.

Auto Workers Union to Vote on Authorizing Strikes Against Detroit Automakers

Approximately 146,000 members of the United Auto Workers (UAW) union are set to vote next week on whether to authorize strikes against the Detroit automakers. Talks between the union and the automakers have been ongoing since mid-July but have been progressing slowly, with wages and economic issues yet to be addressed.

Contracts between the UAW and General Motors, Ford, and Stellantis are set to expire on September 14. The union has not specified a target company for potential strikes but has expressed high expectations for the contract talks. UAW President Shawn Fain has outlined the union’s demands, which include more than 40 percent general pay raises over four years, restoration of pensions for newer hires, cost-of-living increases, an end to wage tiers, and other benefits.

In addition to economic issues, the UAW is also seeking guarantees that it will represent workers at the 10 US electric vehicle battery plants proposed by the automakers, most of which are joint ventures with Korean battery companies.

While Fain has criticized Stellantis for seeking concessions in the contract negotiations, a union spokesman clarified that singling out Stellantis does not necessarily mean it has been selected as a strike target. The UAW could potentially choose to strike against all three automakers.

The automakers, on the other hand, are facing significant development costs as the industry shifts from combustion engines to electric vehicles. In a letter to employees, Stellantis Chief Operating Officer Mark Stewart accused Fain of engaging in “theatrics and personal insults” that do not contribute to reaching a deal. Stewart emphasized the company’s commitment to an agreement based on “economic realism” that supports the viability of Stellantis’ operations while also rewarding workers.

Similarly, GM stated that it is bargaining in good faith for a contract that provides job security and competitive wages and benefits for its team members.

The outcome of the strike authorization vote will have significant implications for the ongoing contract negotiations between the UAW and the Detroit automakers. As the expiration date approaches, both sides will need to work towards a mutually beneficial agreement that addresses the concerns of the union members while also considering the financial challenges faced by the automakers.

Overall, tensions are rising as the UAW seeks substantial gains for its members and the automakers strive to balance the costs of transitioning to electric vehicles with the need for competitive operations and job security.

Short Takeaways:

• The UAW will vote on authorizing strikes against Detroit automakers due to slow progress in contract talks.
• Union demands include pay raises, pension restoration, cost-of-living increases, and an end to wage tiers.
• The UAW also wants guarantees to represent workers at proposed electric vehicle battery plants.
• Automakers face significant development costs as the industry shifts to electric vehicles.
• Tensions rise as the UAW seeks substantial gains and automakers aim for economic viability.