DETROIT — The United Auto Staff is expanding strikes to 38 parts and distribution locations across 20 states, targeting General Motors and Stellantis, UAW President Shawn Fain said Friday morning.
The union is not going to initiate additional strikes at Ford Motor, as the corporate has proven it’s “serious about reaching a deal,” Fain said in a Facebook Live comment.
“We still have serious issues to work through, but we do want to acknowledge that Ford is showing that they are serious about reaching a deal,” said the outspoken union leader. “At GM and Stellantis, it’s a special story.”
Fain said the union and Ford have made progress on issues including eliminating some wage tiers, reinstating cost-of-living adjustments and an improved profit-sharing formula.
He also said the union won the fitting to strike over plant closures in the course of the term of the deal in addition to a right away conversion of temporary, or supplemental, employees — those with not less than 90 days of employment — upon ratification.
Ford said the corporate is “working diligently with the UAW to achieve a deal,” but “we still have significant gaps to shut on the important thing economic issues.”
(L-R) Supporter Ryan Sullivan, and United Auto Staff members Chris Sanders-Stone, Casey Miner, Kennedy R. Barbee Sr. and Stephen Brown picket outside the Jeep Plant on September 18, 2023 in Toledo, Ohio.
Sarah Rice | Getty Images
“In the long run, the problems are interconnected and must work inside an overall agreement that supports our mutual success,” Ford said in an announcement Friday.
The strikes on the GM and Stellantis parts suppliers will add roughly 5,600 autoworkers, including roughly 3,500 employees at GM, to the UAW’s ongoing strikes on the Detroit automakers.
“Today’s strike escalation by the UAW’s top leadership is unnecessary,” GM said in an announcement. “We have now now presented five separate economic proposals which might be historic, addressing areas that our team members have said matters most: wage increases and job security while allowing GM to succeed and thrive into the long run.
“We’ll proceed to bargain in good faith with the union to achieve an agreement as quickly as possible,” the automaker said.
Stellantis said in an announcement it questions “whether the union’s leadership has ever had an interest in reaching an agreement in a timely manner.”
Roughly 12,700 UAW employees went on strike every week ago at the next locations: GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.
Parts distribution centers have been a serious point of concern during these talks, especially at Stellantis. The automaker has proposed consolidating 10 “Mopar” parts and distribution centers, that are scattered across the country, into larger Amazon-like distribution centers.
GM has agreed to eliminate the wage differences at its parts and components plants, in accordance with Fain. He commended the Detroit automaker for that motion but condemned it for resisting further measures that Ford has agreed to with the union.
Targeting the parts and distribution centers is a novel strategy. It doesn’t affect the production and assembly of vehicles but relatively the distribution of parts to dealers.
The brand new work stoppages, if prolonged, could cause significant disruption for dealers, which could in turn delay fixes for patrons. Repair wait times have already been problematic because of recent supply chain issues.
“It will impact these two firms repairs operations,” Fain said. “Our message to the buyer is straightforward: The technique to fix the frustrating customer experience is for the businesses to finish price gauging. Invest these record profits into stable jobs and stable wages and advantages.”
Many, including Wall Street analysts, expected the union to expand work stoppages to full-size truck plants of the Detroit automakers, that are crucial to the profitability of the businesses.
The affected facilities for GM include 18 plants in 13 states: Michigan, Ohio, Colorado, Wisconsin, Illinois, Nevada, California, Texas, West Virginia, Mississippi, North Carolina, Tennessee and Pennsylvania.
For Stellantis, the prolonged strikes affect 20 facilities in 14 states: Michigan, Ohio, Wisconsin, Minnesota, Colorado, Illinois, California, Oregon, Georgia, Virginia, Florida, Texas, Recent York and Massachusetts.
“This expansion may even take our fight nationwide,” Fain said. “We’ll keep going, keep organizing and keep expanding the stand-up strike as obligatory.”
UAW began targeted strikes after the perimeters failed to achieve tentative agreements by the expiration of the previous contracts at 11:59 p.m. Sept. 14.
The extra plant strikes come despite record contract offers from the automakers, including roughly 20% hourly wage increases, hundreds of dollars in bonuses, retention of the union’s platinum health care and other sweetened advantages.
Stellantis said on Friday it had made a “very competitive offer” that will see current full-time hourly employees earning between $80,000 and $96,000 a 12 months by the tip of the contract, constituting a 21.4% compounded increase; a long-term solution for an idled factory in Belvidere, Illinois; and, “significant product allocation that permits for workforce stability through the tip of the contract.”
“We still haven’t received a response to that provide,” the corporate said.
The union has demanded 40% hourly pay increases, a shortened workweek, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, amongst other improvements.
United Auto Staff members and supporters rally on the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan.
Bill Pugliano | Getty Images News | Getty Images
The extra strikes come a day after The Detroit News Thursday night reported leaked messages involving UAW communications director Jonah Furman that raised questions on the union’s motives for the work stoppages.
Within the undated private group messages, viewed by CNBC, Furman describes UAW’s strategy and targeted strikes as causing “recurring reputations damage and operational chaos.”
Furman, who didn’t respond for comment, said if the union “can keep them wounded for months they do not know what to do.”
Fain didn’t address the messages on Facebook Live beyond discussing the union’s strategy of “doing things in another way” to “win record contracts.”
— CNBC’s Gabriel Cortes and John Rosevear contributed to this report.
