About 146,000 U.S. auto workers are set to go on strike this week if General Motors, Ford and Stellantis fail to meet their demands for big pay raises and the restoration of concessions the workers made years ago when the companies were in financial trouble.
Shawn Fain, the combative president of the United Auto Workers union, has threatened to strike any of the three companies that hasn't reached an agreement by the time its contract with the union expires at 11:59 p.m. Eastern time Thursday.
Here's a rundown of the issues that are standing in the way of new contract agreements and what consumers could face if a prolonged strike occurs:The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47.
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. In a letter Friday, Mark Stewart, Stellantis' chief operating officer, told employees that the company's offer to the union would make it financially feasible to employ workers into the next generation.
Still, Fain has raised some hope by saying the union doesn’t want to strike and would prefer to reach contract agreements with the automakers.Eventually. GM, Ford and Stellantis have continued to run their factories around the clock to build up supplies on dealer lots. But that's also putting more money into the pockets of UAW members and strengthening their financial cushions.
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