Possible Strike Looms Among American Automakers as Negotiations Stall: Detroit Show Updates

2023-09-14 01:13:00

(Detroit) A strike appears more and more likely among the three major American automobile manufacturers, union and management having still not managed to agree on Wednesday, the first day of the Detroit show, whose beautiful grilles are eclipsed by this social conflict.

Published yesterday at 9:13 p.m.

John BIERS Agence France-Presse

“We are preparing to strike at these companies in a way never seen before,” warned Shawn Fain, president of the powerful United Auto Workers (UAW) union, on Wednesday.

The positions of the union and management are “very far apart”, he added.

The collective agreements for the “Big Three” — Ford, General Motors and Stellantis — expire Thursday evening at midnight (12 a.m. [heure de l’Est] Friday).

According to Shawn Fain, the work stoppage could begin as early as Friday morning in a limited number of factories, before gradually extending, while continuing negotiations, which began several months ago.

He is asking in particular for the approximately 150,000 members of the UAW in the three groups for significant salary increases in view of the record profits of manufacturers.

The union is therefore demanding salary increases of 40%, of the same magnitude as those granted to managers in recent years.

The UAW also announced the organization of a rally in downtown Detroit on Friday with Senator Bernie Sanders.

PHOTO REBECCA COOK, ARCHIVES REUTERS

Democratic Senator Bernie Sanders

” Public relations ”

“We should work imaginatively to solve complicated problems rather than planning strikes and public relations events,” Ford boss Jim Farley responded in a statement on Wednesday.

PHOTO PAUL SANCYA, ASSOCIATED PRESS

Ford boss Jim Farley

On Tuesday, he assured that his group had made the UAW its “most generous” offer in 80 years of collaboration between the manufacturer and the union. It includes salary increases, inflation protection measures, 17 days of paid vacation and higher retirement contributions.

But he also stressed that there were limits to what the manufacturer can accept, citing the 32-hour or four-day week.

Of the three companies, Ford has the most unionized employees.

Stellantis, for its part, announced on Wednesday that it was committed to “negotiating in good faith to reach an agreement before the expiration of the collective agreements”.

“Jobs sent to China”

Among its demands, the UAW also advocates for job security during the transition to electric vehicles.

Former President Donald Trump, who hopes to seek re-election to the White House in 2024, called on UAW members to “make the complete and total repeal of Joe Biden’s insane electric vehicle mandate their main and non-negotiable demand in any strike. Without it, he predicted, “the American auto industry will cease to exist and all your jobs will be sent to China.”

Joe Biden wants half of the cars sold in 2030 in the United States to be emission-free (electric or hydrogen) or low-emission (plug-in hybrids).

“Scoundrel Joe sold you out to appease the environmental extremists in his party. Don’t surrender! “, further urged the Republican.

The economic consequences of a strike will depend on its scale and duration.

In the worst-case scenario, namely the three groups affected over a long period, household consumption would suffer and layoffs at manufacturers’ suppliers could follow, according to sector analysts.

The Detroit auto show, which will open its doors to the general public on Saturday, kicked off Tuesday evening by Ford with the presentation of a new version of its F-150 pickup truck, the best-selling vehicle in the United States. since many decades.

GM and Stellantis unveiled new vehicles on Wednesday.

On the ground, workers began to organize: the UAW branch at the Ford pickup plant in Dearborn, Michigan, assigned roles for the first seven days of a work stoppage.

Picketing guidelines instruct employees to “peacefully” patrol off factory premises, not leave litter behind and not bring in alcohol.

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