It's now official. The United Auto Workers union went on strike Thursday night after contract negotiations with Detroit automakers fell through. It's the first time in history that the UAW has gone on strike against the three big automakers all at once.
The following plants are on strike:
- General Motors Wentzville Assembly
- Stellantis Toledo Assembly Complex
- Ford Michigan Assembly Plant
The UAW represents 146,000 autoworkers across the country, with around 18,000 right here in Ohio.
The strikes will likely chart the future of the union and of America’s homegrown auto industry at a time when U.S. labor is flexing its might and the companies face a historic transition from building internal combustion automobiles to making electric vehicles.
If they last a long time, dealers could run short of vehicles and prices could rise, impacting a U.S. economy already under strain from elevated inflation. The walkout could even be a factor in next year’s presidential election by testing Joe Biden’s proud claim to be the most union-friendly president in American history.
UAW President Shawn Fain revealed Wednesday what they are calling a “Stand Up Strike” strategy, where they strike the Big Three but at a limited number of targeted locations. Based on how the bargaining is going, Fain said they could announce more locals to stand up and strike throughout the process. He said the locals who aren’t called to strike would maintain “a constant strike readiness” as they work under an expired agreement.
The strike is far different from those during previous UAW negotiations. Instead of going after one company, the union, led by Fain, is striking at all three. But not all of the 146,000 UAW members at company plants are walking picket lines, at least not yet.
Instead, the UAW targeted a handful of factories to prod company negotiators to raise their offers, which were far lower than union demands of 36% wage increases over four years. GM and Ford offered 20% and Stellantis, formerly Fiat Chrysler, offered 17.5%.
After the strike deadline, Stellantis released the following statement:
“We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers. We immediately put the Company in contingency mode and will take all the appropriate structural decisions to protect our North American operations and the Company.”
Ford issued a statement Thursday saying the UAW presented a counterproposal to the automaker a few hours before the contract deadline.
“Unfortunately, the UAW’s counterproposal tonight showed little movement from the union’s initial demands submitted Aug. 3. If implemented; the proposal would more than double Ford’s current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the United States that utilize non-union-represented labor,” the statement read in part.
General Motors CEO Mary Barra said in a letter to the GM Manufacturing Team on Thursday that they put another proposal on the table Thursday morning with a 20% wage increase.
The UAW has well over $800 million in the strike fund, and many workers we spoke with during negotiations said they were willing to fight for what they wanted. Workers who are on strike will get $500 a week in strike pay.
A strike will have an economic impact far beyond the auto industry, with restaurants near plants, auto parts suppliers and more being affected.
The UAW also went on strike against GM in 2019 after failing to reach a tentative contract agreement. That strike lasted from Sept. 15 through Oct. 25 after an agreement was reached on Oct. 16 but ratified nine days later.
Watch coverage of the Toledo walkout on the player below:
What does the UAW want?
The UAW sought a 36% pay boost for workers. General Motors, Ford and Stellantis countered with an increase of around half of that. Specifically, Ford offered 20% over 4 1/2 years, while GM was at 18% for four years, and Stellantis was at 17.5%, according to Fain. Additionally, all three offers on cost-of-living adjustments were deficient, Fain said, providing little or no protection against inflation.
The automakers contended that they need to make huge investments to develop and build electric vehicles while still building and engineering internal combustion vehicles. They say an expensive labor agreement could saddle them with costs that would force them to raise prices above their non-union foreign competitors. And they say they have made fair proposals to the union.
The companies rejected pay raises for retirees who haven’t received one in over a decade, Fain said, and they are seeking concessions in annual profit-sharing checks, which often are more than $10,000.
RELATED: Detroit automakers and auto workers remain far from a deal as end-of-day strike deadline approaches
The strike's overall impact on Ohio
Ford has 7,000 employees at four plants in Ohio. Half of them are employed in Lorain and Cuyahoga Counties, with more than 1,700 workers each at both its Cleveland Engine Plant in Brook Park and the Ohio Assembly plant in Avon Lake.
GM has just under 4,500 workers, primarily at four locations, but 22% of them can be found in Cuyahoga County at its Parma Metals Center.
The bulk of Stellantis’s 6,600 workers can be found in and around Toledo at its Jeep Assembly complex.
Below is a map of where Ohio's autoworkers are employed:
RELATED: Ohio braces for impact of potential United Auto Workers strike against 'Big 3' as deadline nears
The strike's impact on local communities
A grandmother who has worked at the General Motors Parma Metal Center since 2007 and takes care of her family and three grandchildren says the Detroit automakers have not given its workers pay increases and improved benefits that have kept pace with inflation, especially over the past four years.
RELATED: Parma General Motors grandmother prepares to walk picket line as UAW strike looms
Parma's mayor, Tim DeGeeter, is concerned about how a strike could affect the revenue autoworkers generate for the city.
"Cities survive on income tax, and they're one of our biggest employers,” DeGeeter said of GM. “So the longer they're out, that also affects us as a city on what we do as far as services go."
Yes, local governments are funded by taxes and fees, with property taxes, on average, being the biggest one for most communities across the country. Some, however, differ — about 16% rely more heavily on sales taxes to keep the municipal lights on, and an even smaller 8% nationwide, including Ohio, rely on income taxes to do it.
So a large employer like GM, with more than 900 people, means a large check for a city like Parma, but only if those people are working and getting paid.
The Biden Administration's take on the strike
President Joe Biden has called himself the most pro-union president ever, but supporting the UAW might put him at odds with one of his own policies—a push for electric vehicles in the coming years.
Ford CEO Jim Farley said last year that EVs will eventually require 40% less labor to build than traditional cars. The UAW has criticized Democrats in Washington for handing out EV battery-building contracts to states with low union membership.
Typically, the union has been in lockstep with Democrats, endorsing President Joe Biden in 2020 and countless other Democrats throughout the last 100 years. In return, Democrats have typically stood by auto workers and many of their demands during work stoppages.
However, UAW President Shawn Fain has yet to endorse a candidate for president in 2024. Most major unions have already endorsed President Biden.
Standing by the auto workers in a possible strike could potentially put the president against his own EV policies. Not standing by them entirely could potentially cost him an endorsement.
Former President Donald Trump, meanwhile, is attempting to use this to his advantage.
"What's happening to our auto workers is an absolute disgrace and outrage beyond belief," Trump said in a Sept. 4 social media post.
"These people are allowing this country to do these electric vehicles that very few people want," Trump added.
RELATED: Potential UAW strike puts Biden in precarious position
The Associated Press contributed to this report.
