UAW strike: Car workers intensify protest, threatening US economy
As the dispute over pay and benefits enters its third week, the United Auto Workers (UAW) union is extending the strike at several of America's largest automakers.
7,000 more workers at Ford and General Motors factories are reportedly planning to strike, according to union president Shawn Fain.
According to him, the most recent action did not target Stellantis, suggesting new impetus in those negotiations.
In a conflict that has clouded the US economy, about 18,000 workers were already on strike.
Both US President Joe Biden and re-election candidate Donald Trump visited the Detroit area this week to discuss the matter, which comes as labor tensions heat up around the nation.
The union entered negotiations calling for, among other things, an end to policies that pay newer workers less and provide less benefits over a four-year period.
The businesses have argued that the union's demands would make it harder for them to make long-term investments. They have responded with a pay raise of about 20% and a few other concessions.
This week, many employees in Michigan said they were prepared for a protracted struggle.
People are tired of it. According to Emily Yettaw, a 17-year GM employee, "We want there to be a middle class. We deserve better, and they are generating billions of dollars in profit.
Since labor contracts expired on September 14th, the union, which represents 146,000 employees at the three businesses, has been gradually increasing pressure on the automakers to reach an agreement.
The most recent action extends the work stoppages to two additional factories: a GM plant in Michigan that produces large crossover SUVs like the Chevrolet Traverse and Buick Enclave, and a Ford plant in Chicago that produces Explorers.
Prior ambitions for the union included three factories, one for each company, and 38 facilities that supply parts to dealers.
General Motors stated that "calling for more strikes is just for the headlines, not real progress" in a message to its employees.
The business claimed that after submitting a proposal on September 21st, it has not gotten a "comprehensive" response. According to the statement, the offer gave employees "historic wage increases and job security without putting our future at risk."
Gerald Johnson, the managing director for global manufacturing, stated, "We continue to stand ready and willing to negotiate in an attempt to reach an agreement that benefits you and prohibits the non-union manufacturers win."
The action's economic impact is still modest but growing. The standoff cost the local economy an estimated $1.6 billion (£1.3 billion) in losses in just the first week alone, including more than $100 million (£81 million) in lost wages.
Wayne, Michigan's Karma Coffee & Kitchen is run by Jennifer Romero. Her store is near to a shuttered Ford facility, and it has a flyer supporting the strike in the window. Sales at Jennifer's store, she claims, have been notably sluggish.
Blue collar employees make up the majority of our neighborhood, she remarked. The adage goes, "If they're not working, they're failing to spend money, and if they're not spending money, you're not making money."
The timing of the issue "could not be worse" for the car firms, who are dealing with high investment costs and fierce rivalry as the industry ramps up production of electric cars, according to Wall Street analyst Dan Ives of Wedbush Securities.
In a letter on Friday, he said, "This UAW debacle strike trajectory is like watching a cooling moving car crash take place on black ice."
"If GM, Ford, and Stellantis accept anything resembling the deal on the table, the potential will be very bleak for the US auto industry," the statement reads, "This is a defining period for Detroit or us future of the auto industry."
Despite the fact that many will lose their jobs as a result of getting only $500 (£410) in strike money per week, employees on the picket line in the Detroit area this week claimed they were still committed to the struggle.
It's time for mac and cheese and ramen noodles, joked GM employees in Ypsilanti. "Stop eating at Red Lobster."
Kemi Hooker, 53, a 24-year GM employee, continued, "I don't think anybody is scared to be out here." "We'll take any necessary steps."
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