AP – The United Auto Workers (UAW) union expanded its strike against major carmakers in the United States (US), walking out of all 38 parts-distribution centres operated by General Motors (GM) and Jeep and Ram owner Stellantis in 20 states but sparing Ford from further shutdowns.
US President Joe Biden said on X, formerly known as Twitter, that he will visit Michigan on Tuesday “to join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create”.
Ford avoided additional strikes because the company has met some of the union’s demands during negotiations over the past week, UAW President Shawn Fain said during an online presentation to union members. “We’ve made some real progress at Ford,” Fain said.
“We still have serious issues to work through, but we do want to recognise that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it’s a different story.”
Fain said GM and Stellantis, the successor to Fiat Chrysler, have rejected the union’s proposals for cost-of-living increases, profit sharing and job security, and “are going to need some serious pushing”.
GM said it has presented five “historic” offers covering wages and job security.
“Today’s strike escalation by the UAW’s top leadership is unnecessary,” the company said in a statement. “The UAW leadership is manipulating the bargaining process for their own personal agendas.”
Stellantis said it made “a very competitive offer” on Thursday that would pay all current full-time hourly employees between USD80,000 and USD96,000 within four years and seven months, and allow “workforce stability” during that time. The company said the UAW has not responded. Instead of targeting more production plants on Friday, the UAW went after centres that distribute parts to car dealer service departments.
That could quickly drag consumers into the middle of the fight, if dealers run short of parts.
The UAW said the new walkouts will affect 5,600 workers on top of the nearly 13,000 who began strikes last week at three Ford, GM and Stellantis assembly plants. Those original strikes will continue, the union said.
The UAW is continuing to avoid targeting plants that make Detroit’s bestsellers, such as the Ford F-150 and Stellantis’ Ram pickups, which represent outsize shares of the companies’ revenue and profit. That represents a union strategy to gradually increase the pain of a strike on the automakers. Deutsche Bank analysts estimated on Friday that GM, Ford and Stellantis have lost production of more than 16,000 vehicles since the strike started last week at a Ford assembly plant near Detroit, a GM factory in Wentzville, Missouri, and a Jeep plant run by Stellantis in Toledo, Ohio.
Anderson Economic Group, a consulting firm in Michigan that tracks the industry, estimated on Friday that the strike had caused about USD1.6 billion in economic damage including more than USD500 million for the companies and more than USD100 million in wages lost to strikers and layoffs.
The carmakers and some of their suppliers have laid off about 6,000 workers in moves they say are related to the strike.
