Posted on 16 Oct 2023
The Big Three automakers are still at odds with workers over contract negotiations, after nearly a full month of labour strikes initiated by the United Auto Workers union.
Contracts between the UAW and Ford, Stellantis and General Motors expired just before midnight on 15 September, leading the union to call a “Stand Up Strike” at three US plants. In the month since, the strikes have expanded to include 33,700 UAW members at 44 facilities.
In the latest expansion, 8,700 workers were called to walk out at Ford’s Kentucky Truck Plant, which generates $25 billion in revenue each year. UAW president Shawn Fain says union leadership called the strike following a lacklustre meeting with Ford, where “they tried to give us the same deal that we rejected two weeks ago.”
Negotiations have faltered on key issues including pensions, significant wage increases and EV battery manufacturing plants. Despite both sides acknowledging progress in the bargaining process – such as GM agreeing to put its battery plants under the UAW national master agreement, or Ford offering a 23% pay increase – no tentative agreements have been reached.
These strikes are putting increased financial strain on the Big Three, Kallanish notes. During a media and analyst call Thursday, Ford Blue president Kumar Galhotra said the company is at its limit, adding: “We stretched to get to this point. Going further will hurt our ability to invest in the business like we need to invest.”
Some investments have already been impacted, as Ford halted construction on its Marshall EV battery plant in late September. It is unclear when, or if, building will continue on the $3.5 billion project.
A Michigan economic consulting firm estimates that the Big Three lost a collective $1.29 billion during the first two weeks of the strike. When lost wages and supplier, dealer and customer losses are considered, that total rises to $3.95 billion, per the Anderson Economic Group.
Fain is unsympathetic to the automakers’ woes, saying: “A negotiation requires both sides making movement. If they’re not ready to move, then we’re going to give them a push in a language they understand: dollars and cents.”
Despite the union’s continued focus on EV manufacturing and battery plants, it did not provide an update or respond to questions.
Source:Kallanish
