Simultaneous strike of more than 12 thousand workers from three major US automobile companies.

The United Auto Workers (UAW) union launched the most ambitious factory worker action in the United States in decades, launching simultaneous strikes at three factories owned by General Motors, Ford and Chrysler parent Stellantis.

The “Detroit Three” strikes at three major U.S. automakers will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup trucks, among other popular models.

UAW President Shawn Fain said the union will postpone more costly company-wide strikes for now, but that all options will be considered if new contracts are not agreed upon.

Source: New York Times

‘EMPLOYEES SHOULD GET A GREATER PROFIT SHARE’ DEMAND

Fain announced plans for an unprecedented simultaneous strike in a Facebook Live speech less than two hours before the old contract was set to expire.

The strikes followed weeks of disagreement between Fain and Detroit Three executives over the union’s demands that workers receive a larger share of profits from internal combustion engine trucks and greater job security for workers as Automakers move to electric vehicles.

THE BIG THREE ARE ON STRIKE: THE FIRST IN HISTORY

“For the first time in our history, we will strike in the big three,” Fain said.

Strikes involving a total of 12,700 workers took place at Ford’s headquarters in Wayne, Michigan. F.N.GM’s Wentzville, Missouri GM.N and at the Stellantis assembly facility operated by the Jeep brand in Toledo, Ohio.

These facilities are critical to the production of some of the Detroit Three’s most profitable vehicles.

“This strike is more of a symbolic strike than a truly damaging strike,” said Sam Fiorani, production forecasting specialist at Auto Forecast Solutions.

“If negotiations do not move in the direction that Fain sees as positive, we can expect a major strike to occur in a week or two.”

Fiorani estimates that the limited action will cause production disruptions of about 24,000 vehicles per week.

COMPANIES ARE AFRAID OF COST INCREASES

The union announced it wanted a 40 percent raise.

Companies offered increases of up to 20 percent, but the basic rights demanded by the union were not included in this increase.

None of the Detroit Three has proposed eliminating progressive wage systems that require new employees to stay on the job for eight years to earn the same pay as veteran workers, a key demand of the UAW union.

Ford said the UAW’s latest demands would double its labor costs in the United States and make it uncompetitive against Tesla and other non-union rivals. The strike could mean “nothing” for UAW profit-sharing checks this year, the company said.

Stellantis said the strike immediately put the company into “emergency mode” and that it would make all appropriate structural decisions to protect its North American operations.

General Motors (GM), for its part, announced that it was disappointed by the strike and would continue to “negotiate in good faith.”

Before union President Fain’s speech, GM’s top manufacturing executive, Gerald Johnson, said in a video that the UAW’s wage and benefit demands would cost the company $100 billion, “more than double the total value of General Motors and “it is absolutely impossible to deliver,” he said.

OTHER SECTORS MAY EXPERIENCE DEMAND AND CASH BUILDING

Union President Fain, on the other hand, rejected automakers’ claims that union lawsuits would be too costly and said the companies spent billions of dollars on stock buybacks and executive salaries.

Suppliers and other industries that depend on automakers and their employees may experience demand and cash shortages if the Detroit Three’s U.S. production activities are halted due to a strike.

IT HAS BECOME A POLITICAL DEADLINE

This impasse has become a political issue, and President Joe Biden, who will face re-election next year, has called for a deal.

Biden is providing billions of dollars in federal subsidies to boost electric vehicle sales.

But the shift to electric vehicles could threaten the UAW’s internal combustion engine-based businesses. That is why the automobile union does not support Biden’s re-election. (REUTERS)