UAW President Shawn Fain, that lucky cog, is still waving his “audacious” contract demands for 150,000 UAW members who authorized strikes at Ford, GM, and Stellantis. We recently updated this situation in light of the industry’s EV dilemma and Fain’s theatrics, which include tossing a Stellantis offer in the trash on Facebook Live. That performative stance continues.
Big Three contracts expire on September 14. Let’s check in on how this combative union official spent the past week:
Labor Day: You’d better believe that Fain strutted his stuff at a parade in Detroit. He declared that no concessions would be made on demands for 46% pay hikes and 32-hour work weeks for the price of 40 hours. He insisted that this will happen “by any means necessary.”
One automaker’s move: Ford recently offered a “generous” contract that includes a 9% wage boost through 2027. Granted, this is nowhere near what the UAW wants with wages, but the offer meets other demands. Job tiers would be eliminated, and temp employees would receive 20% raises. Full-time Ford workers would earn between $92,000 to $98,000 and receive around $12,000 in COLA benefits over the life of the contract.
Get The Trash Can Out Again: Predictably, Fain declared that Ford’s offer “insults our very worth.” He bemoaned Ford’s refusal of the 32-hour work week, and he is “fed up and tired of the bullsh*t that the Big Three continue to peddle.” The union reportedly made a counterproposal with details still pending.
Offers In The Wild: Stellantis aims to present another offer by week’s end. Fain also indicated that he expects a GM proposal any day now. However, the UAW already filed ULP charges against both Stellantis and GM for allegedly not bargaining in good faith. The NLRB will investigate.
More Automaker Responses: GM and Stellantis refuted Fain’s allegations, with Stellantis adding that “nearly 1,000 UAW demands” have been a nightmare. Ford stressed that it will not make concessions that would “mortgage our future” and harm UAW members, too.
Meanwhile, a former AFL-CIO director alleges that Stellantis’ 2022 idling of the Belvedere plant is part of a long-game plan to undermine UAW power by outsourcing production to Mexico. This allegation could, perhaps, be used as a bargaining chip by either or both sides.
If A Deal Doesn’t Come Through: The Anderson Economic Group believes that a 2023 strike could cost the Big Three a combined “$989 million in earnings” in 10 days. In 2019, GM took a $3.6 billion hit for a 40-day strike. The UAW has their $825 million strike fund ready.
The “most pro-union” U.S. president weighs in: Joe Biden is “not worried” about a strike, which he believes will not happen. Fain responded with “shock” and reminded Biden that a 2024 endorsement will have to be “earned.” Fain added that a strike would “send a message” to Biden, so these two are only making automakers’ woes more uncomfortable while the clock keeps ticking.
What most don’t realize is that the UAW is actually seeking such high increases because they are playing catchup to non-union automakers in the wage department.
