The United Auto Workers and Detroit’s three big automakers are racing toward a strike deadline. It no longer looks like the union will call on all of its 146,000 U.S. workers to walk off the job.
Both sides began exchanging wage and benefit proposals last week. Though some incremental progress appears to have been made — General Motors made a new, richer offer just hours before the strike deadline — a final agreement could come too late to avoid walkouts. Any strike is likely to cause significant disruptions to auto production in the United States.
Fain himself has acknowledged that the union’s demands are “audacious.” But he has argued that the richly profitable automakers can afford to raise workers’ pay significantly to make up for what the union gave up to help the companies withstand the 2007-2009 financial crisis and the Great Recession. Fain has dismissed these proposals as inadequate to protect workers from inflation and reward them for building the vehicles that have made the Detroit Three so profitable.
“If the companies continue to bargain in bad faith or continue to stall or continue to give us insulting offers, then our strike is going to continue to grow,” Fain said. The union’s strategy, he said, “will keep the companies guessing” about how the union might escalate the fight.Eventually. GM, Ford and Stellantis have continued to run their factories around the clock to build up supplies on dealer lots.
“A work stoppage of three weeks or more,” Fiorani said, “would quickly drain the excess supply, raising vehicle prices and pushing more sales to non-union brands,” Fiorani said.Yes, if it’s long and especially in the Midwest, where most auto plants are concentrated. The auto industry accounts for about 3% of the U.S. economy’s gross domestic product — its total output of goods and services — and the Detroit automakers represent about half of the total U.S. car market.
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