UAW contract talks kick off this week, with Jeep-parent Stellantis starting Thursday followed by Ford on Friday and General Motors on July 18, and the union is already ensuring a departure from previous bargaining.
In the past, the launch was noted for its ceremonial aspects, with a handshake and lots of people in attendance. That’s not what to expect this time around, as the union prepares for what has been described as a more militant approach to talks. In fact, on Monday, the union announced it would abandon the handshake ceremony in favor of a “members’ handshake.”
The union said in a news release that it would meet with members at Stellantis’ Sterling Heights Assembly, Ford’s Michigan Assembly and GM’s Factory Zero on July 12, a day after a 5 p.m. Facebook Live address.
UAW President Shawn Fain said members come first.
“I’ll shake hands with the CEOs when they come to the table with a deal that reflects the needs of the workers who make this industry run. When the 150,000 autoworkers at Ford, GM, and Stellantis receive the respect they are due for their sacrifice in generating the historic profits of the past decade, then we can proceed with a handshake,” he said in the release.
The ceremony is normally just the beginning of a long process, however. Traditionally, the United Auto Workers union names a lead company and then the talks follow what’s called pattern bargaining, with the pattern for other automakers established by what comes out of talks with the lead company.
The current four-year contracts are in effect until 11:59 p.m. on Sept. 14.
What’s the significance of these talks?
This round of contract negotiations marks a key moment for the union and the industry. UAW talks are important in any year, but the stakes are likely higher this time around. The union has a new president, secretary-treasurer, vice presidents and other key officials following its first direct election of top leaders. The election was criticized for its low participation, even prompting lawsuits and candidate protests, but even so, the new leaders have committed to a much more aggressive bargaining stance than in the past and will likely feel added pressure to deliver on pledges made during and after the campaign. The industry is in the midst of a transition to electric vehicles that adds new competitive pressures, including from the growing strength of China’s auto industry, even as U.S.-focused automakers have been largely profitable for years. UAW contracts affect not just the estimated 150,000 autoworkers covered by the agreements with the Detroit Three, but they can also influence what’s provided at nonunionized plants and at auto suppliers.
What are the main issues?
- The union has made regaining cost-of-living adjustments, which were abandoned during the GM and Chrysler bankruptcies in connection with the 2009 financial crisis, a priority. The impact of rampant inflation on the cost of groceries and other products, which many Americans were too young to remember when it reemerged, has heightened interest in securing COLA, which could be tied to inflation.
- Ending tiers, which involve workers in similar jobs making significantly different wages.
- Ensuring job security (along with good pay and benefits) in the face of the electric vehicle transition.
These are other key areas of focus for the union. The union has made it a point to highlight the idling or closing of several plants — Stellantis’ Belvidere Assembly Plant in Illinois, Ford’s Romeo Engine in Michigan and GM’s Lordstown Assembly in Ohio — to highlight job security concerns.
The union has so far opted not to make an endorsement in the 2024 presidential election, as it has pushed for more help from the Biden administration to ensure a “just (EV) transition,” and it has been highly critical of starting wages of $16.50 per hour at GM’s joint venture battery plant in Lordstown. The companies, by contrast, will want to keep labor costs lower, citing competition, and maintain as much flexibility in operations as possible.
What else should I know about this year’s talks?
The UAW won’t be the only major union negotiating with the Detroit Three this year. Unifor, which represents Canadian autoworkers, will also start negotiations with the automakers. That could provide the unions with opportunities to work together on common interests or give the companies chances to try to further divide workers from opposite sides of the border. Regardless, the timing adds to the sense of uncertainty that contract talks and looming deadlines create.
Is a strike a possibility?
For many industry watchers, the question hasn’t been about whether a strike is possible, it’s about which company will the union strike. Nothing is certain, but union leaders have made no attempts to discourage speculation and UAW statements highlighting how profitable the companies are and how much more company leaders make than average workers will likely only seed interest from the rank and file. Weekly strike pay was increased this year to $500 per week and the union’s strike fund was estimated in May at $825 million, two factors that at least add to the perception that union members and the union itself are open to a possibly lengthy work stoppage. The union also struck a number of suppliers this year, perhaps in preparation for what’s ahead.
Didn’t they have a strike the last time?
Yes, in 2019. That’s when 48,000 hourly GM workers walked out of 55 plants in 10 states in a strike that lasted 40 days, the Free Press reported previously. The union noted in May that the strike cost the company a $10.7 billion revenue drop in North America and a loss of $3.4 billion in profits. The impacts, however, are wide-ranging. Strikes are hard on those involved, both in lost wages (strike pay isn’t a replacement for full wages) and in the time spent on the picket line, particularly in inclement weather. But a strike would also affect the businesses that supply the automakers as well as the workers at those facilities.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.