The United Auto Workers (UAW) union has stated that it will go on strike against the Detroit automakers if labor agreements are not reached by the Thursday deadline of 11:59 p.m. ET. UAW President Shawn Fain made this announcement during an interview on CNBC’s “Squawk Box.”
Fain’s statement follows his previous communication with local union leaders, where he discussed the possibility of implementing targeted strikes at specific General Motors, Ford Motor, and Stellantis plants if deals are not reached by Thursday.
According to Fain, “As it stands right now, all three automakers are most likely to be struck unless we get a deal by Sept. 14 at midnight.” He emphasized that all three automakers are expected to deliver for their workers, and if they fail to do so, the union will take action.
It is important to note that targeted strikes differ from national strikes in that they only affect certain plants and are related to specific local contract issues. In contrast, national strikes involve all union members exiting plants, as was seen during the last round of negotiations with GM four years ago.
The UAW continues to push for double-digit wage increases, with Fain stating that the union’s raise proposals to the automakers have not fallen below 30%. Key demands from the union include 40% hourly pay increases, a reduced 32-hour workweek, a return to traditional pensions, the elimination of compensation tiers, and the restoration of cost-of-living adjustments.
Ford CEO Jim Farley expressed optimism about reaching an agreement with the UAW in the next two days but highlighted that there are limits to what the company is willing to offer. Ford’s latest offer includes pay increases, elimination of tiers, inflation protection, increased vacation time, paid holidays, and enhanced retirement contributions. However, Farley stated that the company must also consider protecting future investments and profitability.
It is worth mentioning that Ford does not support a four-day workweek.
