On October 20, United Auto Workers (UAW) President Shawn Fain issued a warning about potential walkouts at U.S. truck and SUV factories unless the Detroit Three automakers made improved wage and benefit offers. Fain emphasized that the companies could afford more than the current record packages being proposed.
Fain stated, “We’re striking the Big Three like we’ve never struck before. These extremely profitable companies have more to give.”
Following five weeks of strikes, Fain revealed that the UAW had recently received updated contract offers from General Motors (GM) and Stellantis, the parent company of Chrysler, within the past 24 hours. Ford had presented its latest offer more than two weeks ago.
Shawn Fain confirmed that the Detroit Three automakers had come together with a proposed 23% wage increase and had made headway on other matters. However, he stressed to UAW members that “there is more to be won.” General Motors and Ford argued that additional cost-of-living adjustments already pushed their total compensation offers beyond 30%.
Fain recognized that some UAW members were inclined to vote on the existing offers, but he encouraged them not to succumb to “fear, uncertainty, doubt, and division” that he believed were being promoted by the companies.
While cautioning about the potential for expanded strikes, Shawn Fain also indicated to UAW members that the negotiations were reaching their conclusion. He stated, “That’s the hardest part of a strike,” emphasizing that the final stretch before reaching a deal is often the most intense.
Prior to Fain’s statement, shares in GM and Ford both closed up by approximately 1% on Friday.
The UAW initially demanded a 40% wage increase as part of their bargaining efforts. Walkouts initially commenced at the three automakers on September 15, and currently, more than 34,000 union members are participating in the UAW’s first simultaneous strikes against the Detroit Three.
Friday’s progress in negotiations came on the heels of the UAW’s unexpected strike at Ford’s Kentucky Truck Plant, a facility with an annual sales value of $25 billion.
Shawn Fain had described the Kentucky walkout as a warning aimed at GM and Stellantis.
Ford, which has presented the most substantial offer among the three automakers, expressed that it had reached the limit of what it could afford while remaining competitive. United Auto Workers
Fain’s statements on Friday included some of his harshest rhetoric directed at Ford and Bill Ford, the company’s chairman and the great-grandson of its founder, Henry Ford. For many years, Ford has fostered a collaborative relationship with the UAW, positioning it as a competitive advantage against GM and the former Chrysler, now Stellantis.
Fain proclaimed, “the days of the UAW and Ford being a team to fight other companies are over.”
He also highlighted Ford’s announcement of a $600 million fourth-quarter dividend, suggesting that it would be equivalent to approximately a one-dollar-per-hour raise for all Ford hourly workers over the entire duration of a new contract.
Automakers have argued that the union’s demands would significantly increase their costs and hinder their electric vehicle initiatives. Notably, EV leader Tesla and foreign brands like Toyota operate non-unionized.
Following Fain’s remarks, Ford released a statement expressing its eagerness to conclude negotiations, citing the impact of the strike on workers’ wages and profit sharing.