UAW plans unusual strike, sources say. Here are the details
Jamie L. LaReau and Eric D. Lawrence, Detroit Free Press
Updated 6 min read
The UAW will run a strategic strike that targets only certain plants across all three Detroit automakers and then escalate actions at more plants in waves as negotiations continue over the days without a contract agreement, multiple sources told the Detroit Free Press on Tuesday.
The strike plan was first rolled out to union leaders late last week and Monday, then to UAW Local leaders on Tuesday evening. The plan could change as the negotiations with the Detroit Three continue down to the wire toward Thursday's 11:59 p.m. contract expiration.
UAW President Shawn Fain walks alongside other union members during a rally and practice picket near the Detroit Assembly Complex - Mack in Detroit on Wednesday, Aug. 23, 2023.
"It’s going to change and evolve as it happens,” said a person familiar with the plans who, like others in this report, asked to not be identified because they are not authorized to speak publicly about the strategy.
UAW President Shawn Fain is expected to outline the strike strategy to the broader union membership and public Wednesday evening during a Facebook Live event.
Fain also is expected to notify the membership Thursday night in the Facebook Live broadcast on which locals are to walk off the job if there appears to be no new contract by then, two people who listened to Tuesday's call told the Free Press.
"They’re calling it a stand-up strike as opposed to the sit-down strike in 1936 and '37. The intent is to strike the three strategically," said a person who listened to the call with UAW leaders. The person asked to not be named because they are not authorized to speak publicly. "It will turbo charge the leverage for our bargaining team because it’ll keep the companies guessing. They won’t know who we’re going to go after or when.”
All UAW locals across the three Detroit carmakers are being told to have members ready to walk out in the event their plant is ordered on strike. There will be short lead times given to members at targeted plants. The first wave of plants to walk out is expected to do so shortly after the contract expires, if there is no agreement. Fain has been firm about not extending the contract.
The Free Press is not publishing the names of the plants earmarked for the first wave because they are highly subject to change, according to sources.
But several union leaders told the Free Press a strike appears likely. One UAW source familiar with the issues put the odds of a strike against one of the automakers, Stellantis, at 50/50, declining to discuss negotiations at the other automakers.
When asked by the Free Press previously about a strike scenario, Fain said the UAW does not discuss strike strategy.
A strategic strike could be very effective, Harley Shaiken, professor emeritus and labor expert at the University of California, Berkeley, said.
“Without a contract in place, the UAW could simply select several ‘strategic plants’ whether metal stamping, engine, or transmission and strike those,” Shaiken said. “And, if all three Detroit automakers were struck, it would be a bonanza for Tesla and the international non-union automakers. With the movement towards electrification gaining critical mass Tesla has already scored a bonanza in sales and federal rebates. What would be very troubling for Detroit automakers is that sales lost to Tesla now may mean those customers are gone for good.”
The most recent UAW strike against an automaker was in 2019 against General Motors. It lasted 40 days.
Status of talks
The negotiations continued Tuesday with Fain meeting with the Ford Motor Co. and Stellantis bargaining committees, a source familiar with the talks said. The source said Ford put forth another offer.
As of Tuesday, the highest hourly wage increase offer stood at 16.5% from Stellantis, up from 14.5% a day earlier, said a source familiar with the UAW talks.
UAW President Shawn Fain, right, shouts while walking with officials and union members during the Labor Day parade along Michigan Avenue in Detroit's Corktown neighborhood on Monday, September 4, 2023, to Roosevelt Park in front of the Michigan Central Station.
But the two sides remain “far apart” on many of the union’s demands, several sources said.
The sticking points appear to be the key issues the union wants: A wage increase that several sources confirm has been lowered from the initial demand of 40% across the life of the contract to the mid-30% range, but that could move if other demands are either met by the companies or not. The union had sought 40% increases to more closely line up with boosts to CEO compensation over the years, but as with any negotiations, initial positions tend to evolve as the sides seek to reach a deal.
Also at issue is the union's request to end tier wages, provide a pension plan for in-progression workers and increase retiree income.
Stellantis makes offers
One source familiar with Stellantis talks declined to get into specifics about the percentage increase in wages the union is seeking at this point in the negotiations so as to avoid “false promises." The person pointed to a figure around 16%-17% in terms of what the company has most recently offered. Stellantis had said its first economic proposal to the union, delivered on Friday, included wage increases for most employees totaling 14.5%.
“We’re going back and forth,” the source said.
The source said that the company has made some movement in the area of where certain products will be made, although whether that will include good news for the idled Belvidere Assembly Plant in Illinois was not yet clear. The source said he believes Trenton Engine Complex, where UAW members rallied last week, would be fine despite cutbacks there in recent times.
The company, according to the source, is actively engaged in negotiations now after initial procrastination. The source also said that Mark Stewart, the chief operating officer for North America, has been directly involved.
“I believe they’re taking it seriously,” the source said.
Stellantis North America COO Mark Stewart delivers remarks during the program to introduce the 15 companies that will comprise the inaugural collective of the National Black Supplier Development Program on Aug. 30, 2022. The program will create equity for more than 2.9 million Black businesses in future contracting and procurement opportunities.
Numerous meetings between the union and company negotiators were scheduled on Tuesday at the Stellantis U.S. headquarters complex in Auburn Hills, although one upcoming meeting is planned at the UAW’s Solidarity House in Detroit for scheduling reasons.
When asked whether any involvement had been seen from CEO Carlos Tavares, the source said, “not a word,” although the source thought that might change “if we end up walking.” Tavares has previously pointed to the global nature of Stellantis in noting how directly involved in negotiations he planned to be.
“We have a very powerful leadership team in North America that we trust and has the appropriate mandate to lead those discussions, so I don’t need to be everywhere. I will be where I think I will be the most useful to our organization, to our employees, and with our local management, I think we have everything we need,” Tavares said in July.
