Workers will face the managements of the “Big Three” auto giants at the negotiating table on Saturday on the second day of a strike that threatens to disrupt the economy and affect the 2024 presidential election campaign.
After last-minute efforts by General Motors, Ford and Stellantis to reach an agreement Thursday before the deadline failed, the United Auto Workers union (UAW) decided to strike Friday. The workers seemed determined to continue their movement, even after Ford quickly announced that the ripple effects of the strike would result in the temporary layoff of 600 workers.
Union president Sean Fein said late Friday that reports that “negotiations broke down” were not true. But he added, “Our union members and allies stand strongly by our side.” “Anyone who wants to stand with us can pick up a sign and get in line.”
He said: “We expect to sit at the negotiating table… The three companies have received a comprehensive counteroffer from our union, and we are awaiting its response.”
About 12,700 of the 150,000 workers represented by the union are participating in the strike. But the decision by workers at rival companies to act jointly sent a strong message in their fight for a 40 per cent pay rise.
But the turmoil in the vital sector, which includes brands such as Jeep, threatens the American economy in a period characterized by strong growth and inflationary pressures.
US economic growth indicators rose by 2.1 percent during the period from April to the end of last June, compared to the same period last year. This is considered by observers to be an indication of the resilience of the American economy in the face of rising borrowing costs, whether for personal loans or business loans.
Observers say that consumer spending, which is equivalent to 70 percent of the American economy, rose by 1.7 percent during the second quarter of this year, compared to the same period in 2022, and American consumer spending witnessed a rise of 4.2 percent during the quarter. The first of the current year on an annual basis.
The inflation rate reached 3.2 percent last July. This is down from 9.1 percent during June 2022, the peak of high inflation in the United States.
President Joe Biden, who is seeking re-election next year, expressed his support for the strikers, saying he understood their “feeling of frustration.”
Speaking live from the White House, Biden said workers were unable to benefit from massive corporate profits, which exceeded $20 billion for the three giant companies in just the first half of 2023.
He added: “These record profits were not shared fairly. “Companies have made some important offers, but I believe they must go further to ensure that record corporate profits mean record contracts for the UAW.”
In confirmation of the political influence of unions, left-wing Senator Bernie Sanders and Democratic Michigan Governor Gretchen Whitmer addressed a crowd of strikers on Friday evening.
Sanders said: “We are in the richest country in the history of the world, and families in this country and families of workers in the auto industry should not live under such pressure.”
Rights of hourly workers
Finn said that the union decided to strike at one factory in each company, including the General Motors factory in Wentzville, Missouri. The Stellantis facility in Toledo, Ohio, and the Ford plant in Wayne, Michigan, but only in the final assembly and paint operations. But the threat was clear that the strike could expand.
Many hourly workers say the auto giants should make them much better deals to make up for their meager wages and benefits cuts imposed after the 2008 financial crisis, when General Motors and Chrysler, now part of Stellantis, underwent reorganizations. To avoid bankruptcy.
“This company has been making money on our shoulders for years,” said Paul Seifert, who has worked at the Ford Wayne plant for 29 years. “I think it’s time for us to get paid.”
The union’s demands include a 40 percent pay increase, something Finn stressed was necessary to keep pace with the raises CEOs receive.
Other outstanding points include increasing wages and allowances for junior employees to reduce the gap between them and those with more experience, who currently receive about $32 per hour.
General Motors increased its offer on Thursday, raising the proposed wage increase to 20 percent, noting that the company had previously offered an 18 percent increase, according to the union.
General Motors said in a statement that it “will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”
2023-09-17 00:30:59
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