Shawn Fain, President of the United Auto Workers (UAW) speaks as U.S. President Joe Biden joins striking members of the United Auto Workers (UAW) on the picket line outside the GM’s Willow Run Distribution Center, in Belleville, Wayne County, Michigan, U.S., September 26, 2023. REUTERS/Evelyn Hockstein Acquire Licensing Rights
Sept 27 (Reuters) – The United Auto Workers (UAW) union plans to strike additional Detroit Three automotive facilities on Friday absent serious progress, a source told Reuters.
UAW President Shawn Fain plans to announce new targets at 10 a.m. in online remarks and workers would walk out of additional facilities at 12 p.m., the source added.
On Sept. 22, the UAW expanded its strikes against Detroit automakers General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI), but kept its Ford (F.N) walkout limited to a single plant. It is unclear whether Ford will be targeted in the next round of actions.
The union historically has picked one of the Detroit Three to negotiate with first as the so-called target that sets the pattern on which subsequent deals are based. This time, Fain targeted all three companies simultaneously.
GM, Ford and Stellantis were not immediately available for comment.
The automakers and the UAW remain far apart on core issues of pay, retirement benefits and time off. Fain has stuck with a demand for 40% pay increases over four years. The automakers, in separate proposals, are offering roughly 20%. The UAW is pushing automakers to eliminate the two-tier wage system under which new hires can earn far less than veterans.
Long walkouts at factories producing large pickup trucks could cost the automakers billions in revenue and profit. Analysts estimate GM, Ford and Stellantis earn as much as $15,000 per vehicle on each of their respective large pickup models.
The automakers, like their global counterparts, have been focused on cost reductions, which in some cases include job cuts, to help accelerate a shift to electric vehicles (EVs) from gasoline-powered vehicles.
The UAW, which represents 46,000 GM workers, 57,000 Ford employees and 43,000 Stellantis workers, kicked off negotiations with the companies in July.
Reporting by David Shepardson and Joseph White
Our Standards: The Thomson Reuters Trust Principles.