Auto workers may go on strike in the coming weeks if the union can’t reach agreements with the Detroit 3.
The United Auto Workers (UAW) union announced Friday that its 150,000-strong membership passed a vote with “near universal approval” to authorize a strike if it cannot reach a deal with Ford, General Motors and Stellantis. On average, the union says its authorization vote overwhelmingly passed with 97% in favor, with votes still being counted. Across workers at each of the Big Three, unionized Ford employees passed the vote by a 98% margin, while GM authorized the strike at 96% and Stellantis workers approved by 95%.
“Our members’ expectations are high because Big Three profits are so high,” said UAW President Shawn Fain. “The Big Three made a combined $21 billion in profits in just the first six months of this year.” Editorial note: GM’s reported an EBIT-adjusted net income of $7.03 billion in the first six months of 2023. Ford reported a $7.2 billion net income, while Stellantis reported an adjusted profit of 8.03 billion Euros (or $8.7 billion) in North America. The combined income figure amounts to just under $23 billion.
The authorization vote does not guarantee a strike will happen — that will only be the case if the UAW cannot reach agreements with the Big 3 before September 14 at 11:59 PM ET, when the current contracts expire. Fain emphasized extending negotiations beyond the expiration date is not an option.
“Our goal is not to strike, our goal is to bargain a good contract for our members,” Fain said. “But we prepare a strike so that we’re ready no matter what happens.”
The union has four primary demands: the elimination of tiered wages and benefits, wage increases to offset recent inflation, the reestablishment of cost of living allowances and improved paid time off and retiree benefits, including pensions and healthcare.
Automaker reactions
General Motors set up a website (www.gmnegotiations2023.com) with a Q&A second and important dates regarding the strike. The automaker and the UAW began contract negotiations on July 18. Company spokesperson Pat Morrissey told the Detroit Free Press in a statement, “We continued to work hard with the UAW every day and bargain in good faith to ensure we get this agreement right for our team members, our customers, our suppliers, the community and the business.”
The other automakers struck a similar tone in reacting to the strike authorization vote. Ford spokeswoman Jessica Enoch said, “We look forward to working with the UAW on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever.” Enoch also emphasized that Ford employs more UAW-represented hourly workers than any other manufacturer.
Jodi Tinson, speaking for Stellantis as senior manager for North American media relations and formerly its manufacturing and labor communications, said that “the discussions between the Company and the UAW’s bargaining team continue to be constructive and collaborative with a focus on reaching a new agreement that balances the concerns of our 43,000 employees with our vision for the future — one that better positions the business to meet the challenges of the US marketplace and secures the future for all of our employees, their families and our company.”
During a Facebook Live feed, Fain said union leadership expects the Big Three to bargain and reach final agreements by September 14, and that he is not picking a “target company” to work toward a contract first, then model that agreement toward the two remaining automakers. However, should one, two or all three fail to reach a deal by the deadline, today’s vote indicates a willingness to move the conversation on to how it will handle a strike.
Fain ran for presidency of the union this year, beating incumbent Ray Curry by focusing on opposing corruption within the union and more militant negotiations with the Big Three automakers.
