UAW Cites Slow Negotiations as Strike Continues, Snubs Politicians

Matt Posky
by Matt Posky

Contract negotiations between Detroit automakers and the UAW resumed over the weekend with union leadership signaling that little progress had been made. Despite Stellantis having matched the 20-percent raises offered by GM and Ford over the weekend, UAW President Shawn Fain has said the overall agreements remain unsatisfactory.

As mentioned in our earlier coverage, the union is seeking a 40 percent raise across the board through 2027 — resulting in roughly $25 an hour (around $52,000 per year) for starting employees. Some of the benefits, many of which had been rolled back as concessions during the 2008 financial crisis, are also sticking points. Fain wants workers to see those benefits restored, claiming the industry can easily afford them.


“It’s definitely a no-go; we’ve made that very clear to the companies,” Fain told CBS News over the weekend.


At present, roughly 13,000 UAW employees are on strike at facilities owned by each of the three domestic companies. Besides the sizable increase in pay, the UAW is demanding shorter work weeks, a restoration of defined benefit pensions lost in earlier contract negotiations, and some guarantees about job security as automakers continue shifting toward all-electric vehicles. The latter issue is something that has also been a focus of the German union IG Metall for years after it became clear that the automotive sector would need fewer domestic hands to assemble EVs.


The strikes have stalled production of the Ford Bronco (in Michigan), Jeep Wrangler (in Ohio), and Chevrolet Colorado (in Missouri). 


Ford announced on Friday, that it would be laying off roughly 600 workers at a Michigan plant because of the impact of the strike. GM likewise dumped an estimated 2,000 workers in Kansas adding that their factory likely would be shut down this week due to a lack of parts stemming from the strike at its Missouri plant. Meanwhile, Stellantis reportedly criticized the UAW for putting the future of the Belvidere Assembly Plant (located in Illinois) in jeopardy by striking.


However, that particular facility was idled in February after sales of the Jeep Cherokee dropped. Stellantis now has tentative plans to convert the factory into a plant focused entirely on producing EVs.


Fain has been critical of the industry’s response to the strike, especially when executives make assertions that worker compensation is fair. General Motors CEO Mary Barra has said her own pay is based largely on performance, which the union head has used as ammunition against the industry.


“To say they’re paid for their performance, that's completely incorrect,” Fain was quoted as saying by Automotive News. “They're paid for our workers’ performance and it's a shame that they make those millions off the backs of exploiting workers at poverty wages.”


While suggesting that union labor receives poverty wages seems a tad hyperbolic, it’s no secret that CEO compensation has ballooned dramatically.


Based on data from the Economic Policy Institute, CEO pay grew by a truly insane 1,460 percent between 1978 and 2021. By contrast, most labor-intensive jobs have failed to even keep pace with inflation, resulting in top-tier automotive executives earning 300 times what the average person on an assembly line might. Widening compensation gaps between upper management and the average employee are something that’s become glaringly obvious in most industries.


Considering the above, UAW strikes are likely to continue until Ford, GM, and Stellantis are willing to do more for the union. While Fain has declined to say when the UAW would announce a second wave of strikes that would rope in additional facilities, that seems the probable outcome without there being a desirable deal on the table.


Fain also debunked any claims that the White House has been assisting the UAW. Despite President Biden appearing to come to the defense of the union in last week’s speech, even noting that the automotive industry has enjoyed record profits of late, the UAW has said the Biden administration has played no role in contract negotiations.


When asked by whether Biden's relevant aides (senior White House adviser Gene Sperling and acting Labor Secretary Julie Su) would be part of brokering an agreement by MSNBC, Fain answered, "Not at all."


Despite several Democratic candidates showing up at picket lines and the Biden administration claiming to have already sent the aforementioned aides, the UAW hasn’t seemed terribly interested in giving them much attention. Fain has repeatedly stated that he’s not interested in politicking or letting the UAW be used as a political tool.


“People are talking about them trying to inject themselves into our negotiations," said Fain without mentioning any specific names. “That's a mischaracterization. They're not involved in negotiations.” 


Donald Trump has also weighed in by urging the UAW to resist automakers’ planned transition to electric vehicles on the grounds that it will eliminate countless manufacturing jobs. But he has not yet attempted to intervene in any contract negotiations beyond suggesting that the overriding situation is unfair to American consumers and the workforce — citing high prices and low pay.


"This is our battle … Our negotiating teams are working hard. Our members are out there manning the picket lines and our allies are out there with us," Fain explained to MSNBC. "This battle is not about the president; it’s not about the former president or any other person prior to that."


[Image: UAW]

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Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Wolfwagen Wolfwagen on Sep 19, 2023

    If I was negotiating for the companies, I would give the UAW their increase in Pay with the following caveat:


    Do not let your members f*ck up or they are done (and not just for one company, the industry). No tardiness, no unexcused absence, no preventable accidents, injuries or damage, no harassment, no insubordination, no violation of any safety rule, policy, or procedure, etc.


    They want professional pay, than be a professional automobile assembler. The ones who want to work will, and the ones who don't will fall off quickly.


    Also, No to the shorter weeks and no to the benefit concessions

  • Master Baiter Master Baiter on Sep 19, 2023

    It's not 1910 anymore.


    Labor unions are a destructive anachronism.

  • Nrd515 GM: If you are going to revive the Camaro again, PLEASE do the following:[list=1][*]Make it actually good looking, and avoid the first gen "tribute" disaster of the last 14 years. You managed to take the pretty ugly 2010 to 2106 cars and then make them even uglier for the last years. And you wondered why it didn't sell? Look at the back of the car and you really think that's a good look?[/*][*]Make the car's trunk actually useful for more than golf clubs. [/*][*]Make it slightly larger inside, the last two gens have been almost like being in a small cave. The interior was hideous, too. Boring is fine, as long as it's in black.[/*][/list=1]I am a 2 time Camaro owner ('79 and '86), and a one time Trans Am ('79) owner. Instead of a Camaro, I have owned 2 Challengers.
  • Nrd515 When my '18 Torred Challenger was stolen back in Feb, I never expected to get it back in any kind of decent shape and had negotiated a deal to buy a '23 Scat Pack in Plum Crazy Purple. I almost bought my '18 in that color, but I worried I would get tired of it. I see a PCP Challenger all the time and like it, and the PCP car was equipped exactly as my present car is, so it was an easy choice. My car was found minutes after I had finished the negotiation, and 2 months later, about $2000 out of pocket, and the insurance paying about $12K in repairs, the car is back and is now a huge hassle to steal with a wheel lock, neutral release blocking plate, Carlock, and a Fast 5.0 throttle lock out. No cell phone with the correct code, all it does is idle.
  • Nrd515 I have an '18 Challenger too, use my trunk daily, and just like my '10 Challenger, and my '08 Charger, the factory struts soon weakened to the point I got conked on the head when it was under 50 degrees outside. You can't hold the trunk open and pick up a heavy or awkwardly shaped object, so getting nailed was a constant threat. I bought new factory struts for the two older cars, and within a year was getting conked or coming close to getting conked. I finally bought a set of enhanced power struts and I wish I had done it back about 2010 when my Charger "got me" the first time. I've had them for over 19 months and they still are stronger then the factory ones. Once the lid is up, it stays up, even at about 0 degrees F.
  • BobinPgh Bozi I have seen pit stops and it seems you have to be more of an athlete than a mechanic. So I am surprised that you got into from writing. Did you play a sport in school? Do you work out at the gym? Are you starting to get "too old" for this? Just going over the wall you have to be a young man. Do you have to stay away from the sweets and the fat?
  • Tassos View it another way, if the car buying pubic had an average age of 6 or 8 years old (in HUMAN years!), these finned creatures would be a smash hit. Even I liked the horizontal fins (that looked more like narrow squinted eyes than fins) on some 60s Impalas. When I was SIX, not now!
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