In a significant development, the United Auto Workers (UAW) union has made headway in its negotiations with major automakers, signaling a potential end to the unprecedented strikes against Ford, General Motors, and Stellantis. The union's President, Shawn Fain, announced that all three companies would avert an expansion of the UAW's work stoppages for the time being.
The breakthrough came after intense discussions with General Motors (GM) regarding the future of auto jobs, especially as the industry transitions from traditional gasoline-powered vehicles to electric vehicles (EVs). GM has agreed that workers at its future EV battery plants will be covered by the national labor agreement governing other UAW members at GM. This decision was reached after the UAW threatened to expand the strike to a GM plant in Arlington, Texas, which assembles the company's full-sized SUVs.
This agreement is seen as a significant step forward in the union's demand for a "just transition" from gasoline-powered cars to EVs, which are perceived as a potential threat to union jobs. "We have had a breakthrough that not only dramatically changed negotiations, it is going to change the future of our union and future of our industry," Fain remarked.
GM, in a statement, confirmed that negotiations with the UAW are ongoing. "Our goal remains to reach an agreement that rewards our employees and allows GM to be successful into the future," the company stated. Historically, GM has maintained that workers in battery facilities are not GM employees since these plants are operated by joint ventures with Asian battery companies. However, the recent agreement indicates a shift in this stance, ensuring that new battery workers at GM will be UAW members.
The current strikes, which began on September 15, have seen UAW members picketing at various assembly plants and parts distribution centers across the three companies. Despite the challenges, Fain remains optimistic about the progress made. "We are making significant progress. In just three weeks we are moving these companies further than anyone thought was possible," he said. "Our strike is working. But we're not there yet."
Fain, known for his assertive approach and ambitious bargaining demands, emphasized the power of the working class. "We've shown the Big Three we're not afraid to use it. Strikes, and the threat of strikes, by a unified membership, is what delivers," he asserted.
The financial implications of the strike are evident. GM disclosed earlier in the week that it had lost $200 million in the first two weeks of the strike. Meanwhile, Ford announced layoffs for 495 employees across various plants, attributing these layoffs to the ongoing strike.
In terms of wage negotiations, Fain revealed that the companies are now offering raise increases ranging between 20% at GM and Stellantis and 23% at Ford, through the life of the contract that concludes in early 2028. "It's not where we need to be, but it's a hell of a lot further along," he stated.
The UAW's decision not to expand the strike is seen as a departure from past practices and is viewed as a positive sign of progress in negotiations. The union has always maintained its readiness to escalate the strike to exert more pressure on the companies. Fain highlighted the strategic importance of the Arlington plant, describing it as "GM's biggest money maker." He believes that the threat of striking at this plant played a pivotal role in bringing GM to the negotiation table.
