By David Koenig

The United Auto Workers expanded its strike against major automakers Friday, walking out of 38 General Motors and Stellantis parts distribution centers in 20 states.

Another 5,600 additional workers joined the strike on top of the 13,000 of the 146,000 members that began the strike one week ago.

Ford was spared additional strikes because the company has met some of the union’s demands during negotiations over the past week, said UAW President Shawn Fain.

“We’ve made some real progress at Ford,” Fain said during an online presentation to union members. “We still have serious issues to work through, but we do want to recognize that Ford is showing that they are serious about reaching a deal.”

“At GM and Stellantis, it’s a different story,” he said. Those companies, he said, have rejected the union’s proposals for cost-of-living increases, profit sharing and job security.

The union is pointing to the companies’ huge recent profits as it seeks wage increases of 36% over four years. The companies have offered a little over half that amount. The UAW has other demands, including a 32-hour work week for 40 hours of pay and a restoration of traditional pension plans for newer workers.

The companies say they can’t afford to meet the union’s demands because they need to invest profits in a costly transition from gas-powered cars to electric vehicles.

The UAW’s contract with the automakers expired at midnight on Sept. 14, and workers walked out of a Ford assembly plant near Detroit, a GM factory in Wentzville, Missouri, and a Jeep plant run by Stellantis in Toledo, Ohio.

Fain said earlier this week he would call on workers at more plants to strike unless there was significant progress in contract negotiations with the carmakers. Bargaining continued Thursday, although neither side reported any breakthroughs, and they remained far apart on wage increases.

The companies have laid off a thousands of workers, saying some factories are running short on parts because of the strike.

Still, the impact is not yet being felt on car lots around the country – it will probably take a few weeks before the strike causes a significant shortage of new vehicles, according to analysts. Prices could rise even sooner, however, if the prospect of a prolonged strike triggers panic buying.

The union is seeking pay raises of 36% over four years, an end to lower pay scales for new workers, and most boldly, a 32-hour work week for 40 hours of pay. The car companies say they can’t afford the union’s demands despite huge profits because they need to invest in the transformation to electric vehicles.

One week ago, workers went on strike a week ago at three assembly plants — a Ford factory near Detroit, a GM plant outside St. Louis, and a Jeep plant owned by Stellantis in Toledo, Ohio.

The Detroit News reported Thursday that a spokesman for Fain wrote on a private group chat on X, formerly Twitter, that union negotiators aimed to inflict “recurring reputations damage and operational chaos” on the carmakers, and “if we can keep them wounded for months they don’t know what to do.”

Ford and GM seized on the messages as a sign of bad faith by the UAW.

“It’s now clear that the UAW leadership has always intended to cause months-long disruption, regardless of the harm it causes to its members and their communities,” GM said in a statement.

Ford spokesman Mark Truby called the messages “disappointing, to say the least, given what is at stake for our employees, the companies and this region.”

The UAW spokesman, Jonah Furman, did not confirm writing the messages, which were linked to the same picture as his X account, and called them “private messages” that “you shouldn’t have,” the newspaper reported.

Share:
More In Business
Disney content has gone dark on YouTube TV: What you need to know
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
Universal Music and AI song generator Udio partner on new AI platform
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
Load More