The United Auto Workers (U.A.W.) union announced on Friday that 97 percent of its members have voted in favor of authorizing strikes against General Motors, Ford Motor, and Stellantis in the event that the union and companies cannot reach new labor contracts. This vote grants U.A.W. President Shawn Fain the power to call for workers to go on strike after the current contracts expire on September 14.
Normally, strike authorization votes are routine formalities and do not guarantee strikes. However, this vote reflects the U.A.W.’s more assertive approach and the growing shift in organized labor dynamics.
Over the past decade, G.M., Ford, and Stellantis have reported significant profits, emboldening Fain and U.A.W. members to demand substantial wage increases, cost-of-living adjustments, and improved pensions and healthcare benefits.
Fain expressed his determination on Facebook Live, stating, “This is our time to take back what we are owed. We are united, and we are not afraid.” This sentiment has resonated with U.A.W. members, as Fain has successfully rallied and mobilized workers in recent events.
Luigi Gjokaj, a vice president at U.A.W. Local 51, shared his perspective at a rally in Detroit, saying, “There’s nervousness, but there’s excitement. If the company comes to the table and they’re fair, we’ll have an agreement. If it has to go to a strike, we are prepared.”
Fain has been vocal about the need for fair compensation, emphasizing that U.A.W. members are not seeking to become millionaires, but simply want their fair share.
Following the announcement of the strike vote results, Ford stated its hope of collaborating with the U.A.W. to find “creative solutions” during a critically transformative period for the automotive industry.
Fain recently presented a list of demands to the companies, including the possibility of a four-day workweek and a 40 percent wage increase, highlighting the substantial compensation packages awarded to the CEOs of G.M., Ford, and Stellantis over the past four years. While the manufacturers are likely to agree to some wage increases, they remain cautious of escalating labor costs during their transition to electric vehicles.
In an encouraging sign, an Ohio battery plant owned by G.M. and LG Energy Solution agreed to raise wages for 1,900 U.A.W. workers by an average of 25 percent. This demonstrates a willingness by the companies to address wage concerns, although negotiations are ongoing.
The automakers are keen to limit labor cost increases due to their substantial investments in electric vehicle technology. They fear becoming less competitive compared to Tesla and nonunionized foreign automakers operating in the United States.
G.M. projected earnings of more than $9.3 billion this year, while Stellantis, based in Amsterdam, reported record profits of 11 billion euros in the first half of 2021. Ford anticipates earnings before taxes of $11 billion to $12 billion this year, with the majority of profits coming from North America.
Gerald Johnson, G.M.’s executive vice president for global manufacturing and sustainability, emphasized the importance of business profits for future investments, long-term job security, and opportunities for all employees. However, tensions between the U.A.W. and Stellantis have risen, primarily due to the closure of a Jeep plant in Illinois.
While the target of a potential strike has not been explicitly named, Fain has been engaged in public sparring with Stellantis. In response to Fain’s demands, Stellantis proposed increases in workers’ contribution to healthcare costs, reduced retirement account contributions, and the ability to temporarily close plants with limited notice.
Stellantis’s chief operating officer for North America, Mark Stewart, expressed disappointment with Fain’s remarks and urged for less theatrics to reach a resolution. One of Fain’s key objectives is the reopening of the Jeep plant, a point of contention between the U.A.W. and Stellantis.
