UAW Ends 46 Day Strike Against Detroit Big Three

Updated Oct. 31, 2023, 1:00 p.m. EST

• The United Autoworkers Union's (UAW) historic labor agreements with the Big Three automakers mark a reversal of more than 40 years of waning power for auto unions in the U.S. 

• Union officials announced the pact was struck early on Oct. 30, two days after the UAW broadened its strike to GM's Spring Hill Assembly Plant in Tennessee, following agreements with Ford and Stellantis.

• UAW President Shawn Fain described the agreement as historic:

"Over the recent weeks, many thought our demands were excessive. Despite the criticism, we stood firm, resulting in a contract win reminiscent of the 1930s sit-down strikes."

Contract Highlights and Reforms

• Workers will receive an immediate 11% pay raise.
• Reintroduction of the COLA, the cost of living adjustment was given up in 2009.
• Substantial pay hikes, especially for lowest-paid employees. For instance, temps recruited this year will experience a 150% salary jump during the contract's span.
• Starting wages for assembly workers are set to rise roughly 70%, adjusted for the projected cost of living. Top earners will witness a hike of about 33% during the contract's tenure. 
• The end of the widely detested two-tier worker system, which caused pay disparities for identical roles.

Updated Oct. 25, 2023, 2:00 p.m. EST

• On Monday, 6,800 auto workers from the UAW walked out of Stellantis’ Sterling Heights assembly plant in Michigan, where the top-selling RAM pickup truck line is produced.
• UAW president Shawn Fain said:

“Stellantis alone made $12 billion in the first six months of this year. They can afford this. They can make it happen. Our workers deserve their share. I mean, while they say they can’t afford this, the next day they announced more dividends for shareholders.”

• Ahead of another walkout at one of its most profitable factories in Arlington, Texas, General Motors withdrew its 2023 profit outlook. Following GM’s better-than-expected third-quarter earnings, Fain called for a walkout, saying:
• "It’s time GM workers, and the whole working class, get their fair share."
• In a statement, GM responded:

"We are disappointed by the escalation of this unnecessary and irresponsible strike.”

Approximately 41,000 autoworkers are now on strike across the country.

Updated Oct. 17, 2023, 3:00 p.m. EST

• Ford's executive chairman, Bill Ford, urged the UAW union to end their 32-day strike and reach an agreement, citing the impact on the auto industry and larger economy. He said:

"We can stop this now. I call on UAW colleagues ... We need to come together to bring an end to this acrimonious round of talks."

• Ford continued:

"The UAW's leaders have called us the enemy in these negotiations. But I will never consider our employees as enemies. This should not be Ford versus the UAW. It should be Ford and the UAW vs. Toyota and Honda, Tesla, and all the Chinese companies that want to enter our home."

• UAW President Shawn Fain responded:

"It's not the UAW and Ford against foreign automakers. It's autoworkers everywhere against corporate greed. If Ford wants to be the all-American auto company, they can pay all-American wages and benefits."

• Last week, Ford said the company was at the limit of what they could afford on higher wages. Fain disagreed, saying that Ford CEO Jim Farley should:

"Go get the big checkbook - the one Ford uses when it wants to spend millions on company executives or Wall Street giveaways."

• Over 34,000 union members remain on strike. Ford has furloughed 2,480 other workers. 
• The strikes have cost the Detroit Three automakers, suppliers, dealers, and workers a total of $7.7 billion through Oct. 12. Ford says that workers who have been on strike since Sept. 15 have lost an average of $4,000 in pretax income.

Updated Oct. 11, 2023, 12:30 p.m. PST

• Over 4,000 UAW members from the Volvo Group-owned Mack Trucks rejected a tentative contract agreement and voted to go on strike, with 73% union members in favor. The strike began at Mack factories in Florida, Maryland, and Pennsylvania.
• UAW and Mack have been negotiating for three months over wage increases, cost-of-living allowances, job security, pensions, overtime, and prescription drug coverage. The proposed contract included a raise of 19% over five years.
• UAW president Shawn Fain said:

"I'm inspired to see UAW members at Mack holding out for a better deal, and ready to stand up and walk off the job to win it.”

• Mack president Stephen Roy said he was "surprised and disappointed" with the strike announcement. He continued:

"We are committed to the collective bargaining process, and remain confident that we will be able to arrive at an agreement that delivers competitive wages and benefits for our employees and their families, while safeguarding our future as a competitive company and stable long-term employer.”

Updated Sept. 28, 2023, 4:55 p.m. PST

• The United Auto Workers union is preparing to announce a possible expansion of its strike against General Motors, Stellantis and possibly Ford this Friday if there isn’t further progress in negotiations. 
• UAW President Shawn Fain is set to update members on the state of the negotiations on Friday, Sept. 29, at 10 a.m. 
• The announcement comes the day after Biden became the first sitting president to ever visit a picket line in support of strikers. 
• Biden told UAW strikers that “you deserve the significant raise you need."

Updated Sept. 25, 2023, 4:00 p.m. PST

• The UAW has expanded its strike against General Motors and Stellantis, currently targeting 38 parts distribution centers across the country. The strikes at additional facilities on Friday added roughly 5,600 workers to the 12,700 already on strike.
• The move to expand the strike excludes Ford due to more productive talks with the UAW. Despite progress in the negotiations between Ford and the UAW, however, “significant gaps remain,” according to the automaker. On Friday, UAW President Shawn Fain said Ford had improved its contract offer, including boosting profit sharing, but the union still had serious issues to resolve with the company.
• The strikes have already led to over $500 million in losses for the three carmakers and $100 million in lost wages for workers.
• Biden is scheduled to travel to Michigan tomorrow to show support for the workers, visiting a picket line during his trip. Trump is scheduled to speak on Wednesday in Clinton Township, Michigan about the strike.
• Fain said:

"We're focused on moving the companies at the bargaining table. Right now we think we can get there. Stellantis and GM in particular are going to need some serious pushing."

Updated Sept. 18, 2023, 12:02 p.m. PST

• The United Auto Workers have entered the fourth day of their strike with no immediate resolution on the horizon.
• The union resumed talks with GM on Sunday, and are resuming negotiations with Stellantis and Ford today.
• UAW President Shawn Fain said:

“I don't really want to say we're closer. It's a shame that the companies didn't take our advice and get down to business from the beginning of bargaining back in mid-July.”

• When asked whether workers would walk out at more plants this week, Fain said that the union was "prepared to do whatever we have to do."
• Negotiators for the UAW and Ford said they had "reasonably productive discussions" toward a new contract on Saturday.
• Biden, who has signaled support for the strike, ordered acting Labor Secretary Julie Su and advisor Gene Sperling to liaise with the UAW and the automakers during their negotiations. 
• Ford said it was indefinitely laying off 600 workers at a Michigan plant because of the impact of the strike at the facility.

Updated Sept. 15, 2023, 9:35 a.m. PST

• The UAW has voted to strike, and began picketing today in front of Ford, General Motors, and Stellantis plants.
• The strike will not initially involve all of the union's 146,000 members. If all workers walked out, the union's $825 million strike fund would run out in roughly 11 weeks.
• Observers worry that the strike could impact vehicle prices, but UAW President Shawn Fain denied this, stating that labor costs amount to only 4-5% of a vehicle's cost.
• Fain said:

“They could double our raises and not raise car prices and still make millions of dollars in profits. We’re not the problem. Corporate greed is the problem.”

• The strikes may impact the presidential election, testing Biden's claim to be the most "union-friendly president" in American history.
• Liz Shuler, president of the AFL-CIO, a federation of 60 unions with 12.5 million members, said:

“Workers all over the world are watching this."

Updated Sept. 14, 2023, 3:35 p.m. PST

• Detroit’s Big Three automakers brace for a strike as the deadline for contract negotiations with the United Auto Workers union approaches. The automakers and the Union remain divided on contract talks, with no agreements made thus far.
• The Union may initiate the first simultaneous strike against all three automakers in 80 years. UAW President Shawn Fain said the final decision on which plants to strike won't be announced until 10 p.m. Eastern time.
• UAW organizing director Brian O. Shepherd said a full walkout "is still on the table."

Offers and counteroffers

• The UAW is demanding a 40% increase in pay, and the Big Three have countered with offers roughly half that amount. 
• Fain said:

"We do not yet have offers on the table that reflect the sacrifices and contributions our members have made to these companies. To win, we're likely going to have to take action. We are preparing to strike these companies in a way they've never seen before."

• On Wednesday, Ford CEO Jim Farley said the company had made four offers, but the union had not provided a “genuine counteroffer.” He continued:

"It's hard to negotiate a contract when there's no one to negotiate with."

• Farley confirmed that Ford has eliminated wage tiers, restored cost-of-living pay increases, and increased vacation time. The Union denied that tiers were eliminated and has not yet responded to Ford’s fourth offer.
• Stellantis offered an increase of 17.5%, and General Motors has hiked its contract offer to a 20% wage increase. GM CEO Mary Barra said:

"We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight.”

What's the story?

• The United Auto Workers (UAW) union has been in the news for their "audacious" demands, and observers expect a strike when their contract with General Motors, Ford, and Stellantis expires on Sept. 14. If the strike goes ahead, it will involve 146,000 UAW members.
• The union is pushing for a 46% pay raise over four years, a 32-hour week with 40 hours of pay, and a restoration of traditional pensions.
• Currently, Ford and General Motors are offering a 10% raise, and Stellantis, which makes cars and trucks under the Jeep, Ram, Dodge, and Chrysler brands, is offering a 14.5% raise.
• UAW president Shawn Fain said that an agreement is a long way off despite meetings throughout the weekend and on Monday between the union and the automakers.
• Observers expect a strike to be "highly likely."

What is the union saying?

• Fain has denied that the strike would hurt the economy or raise the price of cars:

"In the last four years, the price of cars went up 30%. CEO pay went up 40%. No one said a word. No one had any complaints about that but God forbid the workers ask for their fair share. It's not [that] we'll wreck the economy. We'll wreck their economy, the economy that only works for the billionaire class and not the working class."

• He has been vocal about unfair CEO compensation:

"They get out-of-control salaries. They get pensions they don't even need. They get top-rate health care. They work whatever schedule they want. The majority of our members do not get a pension nowadays. It's crazy. We get substandard health care. We don't get to work remotely."

• UAW members have voted overwhelmingly to authorize its leaders to call a strike. They have yet to decide whether to target one automaker or all three.

What are the automakers saying?

• Automakers have dismissed the demands as unrealistic despite posting billions in profits. Over the last decade, the Detroit Three automakers have posted a collective net profit of $164 billion, with each CEO earning millions in annual compensation.
• Stellantis said in a statement:

"There is still more work to do, but we know that Stellantis and the UAW have a shared interest in these discussions: reaching an agreement that secures the future for our employees and their families."

• Automakers have warned that a strike could lead to a recession in Detroit and drive up the cost of vehicles. Autoworkers at GM went on a 40-day strike in 2019, costing the company an estimated $3.6 billion that year.

Do you support a strike?

—Emma Kansiz 

(Photo Credit: Flickr/U.S. Department of Agriculture)