About 146,000 U.S. auto industry workers are threatening to go on strike this week if General Motors, Ford and Stellantis do not respond favorably to their demands for significant wage increases and a restoration of concessions made several years ago when these companies were in financial difficulty. Shawn Fain, the determined president of the United Auto Workers (UAW), threatened a strike if none of the three companies reach an agreement before their contract deadline, set for September 14 at 11:59 p.m. ballast.
Negotiations over wages and benefits began last week, and while progress has been made, a final agreement may not be reached in time to avoid a major disruption to auto production in the United States. United.
Workers’ demands
The union is demanding a 46% wage increase over a four-year period, which would increase the average hourly wage of a factory worker from $32 to $47 an hour. Workers are also calling for the elimination of differential wage levels, a 32-hour work week paid as 40 hours, a return to defined benefit pensions for new hires (currently beneficiaries of 401(k)-type retirement plans), and indexing of salaries to the cost of living, among other benefits.
Significantly, the union also wants to represent workers at ten electric vehicle battery factories, aiming to ensure competitive wages for these employees. This initiative stems from the automotive industry’s shift toward electric vehicles.
Company offers
Ford proposed a cumulative 10 percent increase over four years, with lump sum payments including $6,000 to cover inflation. GM also offered a 10% raise with similar amounts. Stellantis, for its part, proposed salary increases of 14.5% over four years, without lump sum payments, but with protection against inflation. The companies all included contract ratification bonuses but rejected the reduction in the work week requested by the UAW.
Ford said their offer would increase the average annual salary, including overtime and bonuses, from $78,000 last year to more than $92,000 in the first year of the new contract.
Argument from car manufacturers
Builders say the union’s demands are prohibitively expensive. They emphasize that they need to invest significantly to maintain production of combustion engine vehicles while adapting to electric vehicles and batteries. Additionally, they warn that overly generous deals with the UAW would result in higher sales prices, putting them above their European and Asian competitors.
Potential impact on vehicle supply
The three manufacturers currently have enough stock to last about 70 days, but a prolonged strike could deplete this inventory. Buyers could turn to non-union competitors, which would increase vehicle prices.
Impact on the American economy
A prolonged strike, particularly in the Midwest where most factories are located, would have significant economic consequences. The auto industry represents about 3% of U.S. GDP, and Detroit automakers dominate that market.
Financial issues
Companies have cash to weather a strike, while the union has an $825 million strike fund, but that would only last three months if all workers participate in the strike. It is difficult to predict the outcome of these negotiations, but the stakes are high for workers, businesses and the U.S. economy as a whole. Discussions continue, but a strike could have a significant impact on several fronts. In Canada, the Unifor union has set September 18 as the deadline for negotiations with manufacturers Ford, GM, and Stellantis.
With information from Automotive News Canada
2023-09-12 04:23:28
#prepare #auto #workers #strike #United #States #Reflect
