UAW president reacts to automakers' temporary layoffs of non-striking employees: 'Their plan won't work'
‘Be Greedy When Others Are Fearful’
Warren Buffet
MEREDITH DELISO
Sat, September 16, 2023
The head of the United Auto Workers said plans by two automakers to temporarily lay off non-striking employees "won't work," as the unprecedented strike enters the second day.
The UAW, which represents nearly 150,000 autoworkers, started a strike early Friday morning against the Big Three automakers -- General Motors, Ford and Stellantis. Nearly 13,000 workers walked out of three auto plants in Michigan, Missouri and Ohio. The union is utilizing a "stand-up" strike method to target specific plants and add to the list if a deal isn't reached.
PHOTO: United Auto Workers members march through downtown Detroit, Mich., on Sept. 15, 2023. The UAW is conducting a strike against Ford, Stellantis and General Motors. (Paul Sancya/AP)
Hours after the strike started, Ford announced it told 600 workers who assemble cars at a plant in Michigan not to report to work that day, citing the "knock-on effects" of the strike. Workers in the paint department at a nearby plant are out on strike, leaving the assembly workers without adequate parts, since the parts require paint before they can be put together into cars, the company said in a statement to ABC News.
"Our production system is highly interconnected, which means the UAW's targeted strike strategy will have knock-on effects for facilities that are not directly targeted for a work stoppage," Ford said.
GM also said on Friday it plans to idle 2,000 workers at its Fairfax assembly plant in Kansas as soon as early next week due to a "ripple effect" of the strike at its Wentzville assembly plant in Missouri. The strike will mean a shortage of "critical stampings" supplied by Wentzville to Fairfax, GM said.
"We have said repeatedly that nobody wins in a strike, and that effects go well beyond our employees on the plant floor and negatively impact our customers, suppliers and the communities where we do business," GM said in a statement. "What happened to our Fairfax team members is a clear and immediate demonstration of that fact."
Stellantis has not announced any plans to lay off workers amid the strikes.
PHOTO: United Auto Workers members attend a solidarity rally as the UAW strikes the Big Three automakers, on Sept.15, 2023, in Detroit, Mich. (Bill Pugliano/Getty Images)
UAW president Shawn Fain responded to the announcements on Saturday.
"Let's be clear: if the Big Three decide to lay people off who aren't on strike, that's them trying to put the squeeze on our members to settle for less," Fain said in a statement. "With their record profits, they don't have to lay off a single employee. In fact, they could double every autoworker's pay, not raise car prices, and still rake in billions of dollars."
"Their plan won't work," the statement continued. "The UAW will make sure any worker laid off in the Big Three's latest attack will not go without an income. We'll organize one day longer than they can and go the distance to win economic and social justice at the Big Three."
A UAW source told ABC News on Saturday afternoon the union had "reasonably productive conversations with Ford today."
MORE: Soaring CEO pay commands spotlight in UAW strike against Big 3 US automakers
Economists previously told ABC News a strike could result in billions of dollars in losses, disruption to the supply chain and other financial consequences.
Stellantis provided an overview Saturday evening of what was offered during Sept. 14 negotiations with UAW prior to the strike beginning, saying "it is imperative to set the record straight and provide the facts of Stellantis’ highly competitive offer."
Stellantis said its offer would provide cumulative raises of nearly 21% for hourly wages, with an immediate 10% increase if a contract is ratified.
The owner of Chrysler said in Saturday's press release, "We have listened and will continue to bargain in good faith until an agreement is reached. We look forward to getting everyone back to work as soon as possible."
Sticking points in negotiations were wage increases and the length of the workweek.
President Joe Biden said Friday he is deploying acting Labor Secretary Julie Su and White House senior adviser Gene Sperling to Detroit to offer their support for the parties in reaching an agreement.
ABC News' Alexandra Hutzler contributed to this report.
UAW, automakers resume talks as US strike stretches into second day
Sat, September 16, 2023
MEREDITH DELISO
Sat, September 16, 2023
The head of the United Auto Workers said plans by two automakers to temporarily lay off non-striking employees "won't work," as the unprecedented strike enters the second day.
The UAW, which represents nearly 150,000 autoworkers, started a strike early Friday morning against the Big Three automakers -- General Motors, Ford and Stellantis. Nearly 13,000 workers walked out of three auto plants in Michigan, Missouri and Ohio. The union is utilizing a "stand-up" strike method to target specific plants and add to the list if a deal isn't reached.
PHOTO: United Auto Workers members march through downtown Detroit, Mich., on Sept. 15, 2023. The UAW is conducting a strike against Ford, Stellantis and General Motors. (Paul Sancya/AP)
Hours after the strike started, Ford announced it told 600 workers who assemble cars at a plant in Michigan not to report to work that day, citing the "knock-on effects" of the strike. Workers in the paint department at a nearby plant are out on strike, leaving the assembly workers without adequate parts, since the parts require paint before they can be put together into cars, the company said in a statement to ABC News.
"Our production system is highly interconnected, which means the UAW's targeted strike strategy will have knock-on effects for facilities that are not directly targeted for a work stoppage," Ford said.
GM also said on Friday it plans to idle 2,000 workers at its Fairfax assembly plant in Kansas as soon as early next week due to a "ripple effect" of the strike at its Wentzville assembly plant in Missouri. The strike will mean a shortage of "critical stampings" supplied by Wentzville to Fairfax, GM said.
"We have said repeatedly that nobody wins in a strike, and that effects go well beyond our employees on the plant floor and negatively impact our customers, suppliers and the communities where we do business," GM said in a statement. "What happened to our Fairfax team members is a clear and immediate demonstration of that fact."
Stellantis has not announced any plans to lay off workers amid the strikes.
PHOTO: United Auto Workers members attend a solidarity rally as the UAW strikes the Big Three automakers, on Sept.15, 2023, in Detroit, Mich. (Bill Pugliano/Getty Images)
UAW president Shawn Fain responded to the announcements on Saturday.
"Let's be clear: if the Big Three decide to lay people off who aren't on strike, that's them trying to put the squeeze on our members to settle for less," Fain said in a statement. "With their record profits, they don't have to lay off a single employee. In fact, they could double every autoworker's pay, not raise car prices, and still rake in billions of dollars."
"Their plan won't work," the statement continued. "The UAW will make sure any worker laid off in the Big Three's latest attack will not go without an income. We'll organize one day longer than they can and go the distance to win economic and social justice at the Big Three."
A UAW source told ABC News on Saturday afternoon the union had "reasonably productive conversations with Ford today."
MORE: Soaring CEO pay commands spotlight in UAW strike against Big 3 US automakers
Economists previously told ABC News a strike could result in billions of dollars in losses, disruption to the supply chain and other financial consequences.
Stellantis provided an overview Saturday evening of what was offered during Sept. 14 negotiations with UAW prior to the strike beginning, saying "it is imperative to set the record straight and provide the facts of Stellantis’ highly competitive offer."
Stellantis said its offer would provide cumulative raises of nearly 21% for hourly wages, with an immediate 10% increase if a contract is ratified.
The owner of Chrysler said in Saturday's press release, "We have listened and will continue to bargain in good faith until an agreement is reached. We look forward to getting everyone back to work as soon as possible."
Sticking points in negotiations were wage increases and the length of the workweek.
President Joe Biden said Friday he is deploying acting Labor Secretary Julie Su and White House senior adviser Gene Sperling to Detroit to offer their support for the parties in reaching an agreement.
ABC News' Alexandra Hutzler contributed to this report.
UAW, automakers resume talks as US strike stretches into second day
Sat, September 16, 2023
By David Shepardson
(Reuters) -Talks between the United Auto Workers and the Detroit Three automakers resumed on Saturday, a day after the union initiated the most ambitious U.S. industrial labor action in decades with simultaneous strikes targeting a trio of auto plants.
The four-year labor deal between the union and General Motors, Ford Motor and Chrysler-parent Stellantis expired at 11:59 p.m. EDT on Thursday. Stellantis said on Saturday it has hiked its offer, proposing raises of 20% over a four-and-a-half-year contract term, including an immediate 10% hike. That matches proposals from GM and Ford.
The automakers say the proposals work out to a cumulative 21% hike over the period, but they are still significantly below the 40% wage hike the UAW is demanding through 2027. The union's wage demand includes a 20% immediate increase.
"We do care. We absolutely do care," Mark Stewart, the North American chief operating officer for Stellantis, told reporters on Saturday, describing the company's latest offer as "very compelling."
"This is not about greed. This is about sharing success," he said.
Stellantis also said it is offering more than $1 billion in retirement security improvements and other increases in benefits. Stewart said the UAW rejected a Stellantis proposal to keep an Illinois assembly plant open that was contingent on reaching agreement before the contract expiration. He declined to offer specific details, but added that the company was still willing to talk about the facility's future.
'Go the distance'
The strikes have halted production at three plants in Michigan, Ohio and Missouri that produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, along with other popular models.
Automakers say they need cost-competitive contracts because of the need to spend billions of dollars to make the transition to electric vehicles (EV), while workers note U.S. automakers have enjoyed robust profits over the last decade and had hiked CEO salaries by 40% on average since 2019.
On Friday, Ford said it was indefinitely laying off 600 workers at a Michigan plant because of the impact of the strike at the facility, which makes the Bronco SUV, and GM told some 2,000 workers at a Kansas car plant that their factory likely would be shut down next week for lack of parts, stemming from a strike at a Missouri plant.
Stellantis said on Saturday it does not anticipate any other plants being disrupted by the strike at its Jeep plant in Toledo, Ohio.
UAW President Shawn Fain called the reports of planned layoffs of non-striking workers an attempt by the automakers to "squeeze" union members into accepting a weaker settlement.
"Their plan won't work," Fain said in a statement. "We'll organize one day longer than they can, and go the distance to win economic and social justice at the Big Three."
Besides higher wages, the UAW is demanding shorter work weeks, restoration of defined benefit pensions and stronger job security as automakers make the EV shift. The union also wants an end to so-called "two-tier" wages, while automakers have proposed cutting the number of years needed to reach top pay levels from eight to four years. The UAW said the automakers has rejected many key demands.
U.S. automakers have said the UAW demands could hike the current mid-$60-per-hour labor cost to more than $150 an hour. GM said on Thursday the UAW wage and benefits proposals would cost it $100 billion, while Ford CEO Jim Farley said the 40% UAW wage hike would "put us out of business."
U.S. President Joe Biden, who faces re-election next year, called on Friday for the auto companies to reward workers just as executives' salaries have risen. "The companies have made some significant offers, but I believe they should go further to ensure record corporate profits mean record contracts," he said.
(Reporting by David Shepardson; Editing by Paul Simao)
(Reuters) -Talks between the United Auto Workers and the Detroit Three automakers resumed on Saturday, a day after the union initiated the most ambitious U.S. industrial labor action in decades with simultaneous strikes targeting a trio of auto plants.
The four-year labor deal between the union and General Motors, Ford Motor and Chrysler-parent Stellantis expired at 11:59 p.m. EDT on Thursday. Stellantis said on Saturday it has hiked its offer, proposing raises of 20% over a four-and-a-half-year contract term, including an immediate 10% hike. That matches proposals from GM and Ford.
The automakers say the proposals work out to a cumulative 21% hike over the period, but they are still significantly below the 40% wage hike the UAW is demanding through 2027. The union's wage demand includes a 20% immediate increase.
"We do care. We absolutely do care," Mark Stewart, the North American chief operating officer for Stellantis, told reporters on Saturday, describing the company's latest offer as "very compelling."
"This is not about greed. This is about sharing success," he said.
Stellantis also said it is offering more than $1 billion in retirement security improvements and other increases in benefits. Stewart said the UAW rejected a Stellantis proposal to keep an Illinois assembly plant open that was contingent on reaching agreement before the contract expiration. He declined to offer specific details, but added that the company was still willing to talk about the facility's future.
'Go the distance'
The strikes have halted production at three plants in Michigan, Ohio and Missouri that produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, along with other popular models.
Automakers say they need cost-competitive contracts because of the need to spend billions of dollars to make the transition to electric vehicles (EV), while workers note U.S. automakers have enjoyed robust profits over the last decade and had hiked CEO salaries by 40% on average since 2019.
On Friday, Ford said it was indefinitely laying off 600 workers at a Michigan plant because of the impact of the strike at the facility, which makes the Bronco SUV, and GM told some 2,000 workers at a Kansas car plant that their factory likely would be shut down next week for lack of parts, stemming from a strike at a Missouri plant.
Stellantis said on Saturday it does not anticipate any other plants being disrupted by the strike at its Jeep plant in Toledo, Ohio.
UAW President Shawn Fain called the reports of planned layoffs of non-striking workers an attempt by the automakers to "squeeze" union members into accepting a weaker settlement.
"Their plan won't work," Fain said in a statement. "We'll organize one day longer than they can, and go the distance to win economic and social justice at the Big Three."
Besides higher wages, the UAW is demanding shorter work weeks, restoration of defined benefit pensions and stronger job security as automakers make the EV shift. The union also wants an end to so-called "two-tier" wages, while automakers have proposed cutting the number of years needed to reach top pay levels from eight to four years. The UAW said the automakers has rejected many key demands.
U.S. automakers have said the UAW demands could hike the current mid-$60-per-hour labor cost to more than $150 an hour. GM said on Thursday the UAW wage and benefits proposals would cost it $100 billion, while Ford CEO Jim Farley said the 40% UAW wage hike would "put us out of business."
U.S. President Joe Biden, who faces re-election next year, called on Friday for the auto companies to reward workers just as executives' salaries have risen. "The companies have made some significant offers, but I believe they should go further to ensure record corporate profits mean record contracts," he said.
(Reporting by David Shepardson; Editing by Paul Simao)
Auto workers' union calls talks with Ford productive as strike continues
AP Finance
Sat, September 16, 2023
APTOPIX Auto Workers StrikeUnited Auto Workers member Brian Rooster Heppner raises his fist as he cheers during a rally in Detroit, Friday, Sept. 15, 2023. The UAW is conducting a strike against Ford, Stellantis and General Motors.
AP Finance
Sat, September 16, 2023
APTOPIX Auto Workers StrikeUnited Auto Workers member Brian Rooster Heppner raises his fist as he cheers during a rally in Detroit, Friday, Sept. 15, 2023. The UAW is conducting a strike against Ford, Stellantis and General Motors.
(AP Photo/Paul Sancya)
NEW YORK (AP) — The United Auto Workers said Saturday it had “reasonably productive conversations” with Ford, as its limited strike against the Big 3 automakers carried into a second day.
The union is trying to reach a deal with not only Ford but also General Motors and Stellantis for better pay in an era of big profits for the industry, which is trying to transition from gasoline-powered engines to electric vehicles.
Stellantis on Saturday also gave details about its most recent offer to the union, which brought its wage proposal roughly in line with its competitors. The owner of Chrysler said its offer would provide cumulative raises of nearly 21% for hourly wages, with an immediate 10% increase if a contract is ratified.
That, though, is still below the 36% increase over four years the UAW is seeking, along with other demands that would increase costs for auto companies.
Mark Stewart, chief operating officer for North America at Stellantis, on Saturday called it part of a “really competitive” overall proposal, as it tries to compete with non-union automakers outside the Big 3 that have lower costs.
Stewart also described a possible solution related to a plant in Belvidere, Illinois, that has already been idled, which is a big issue for the union. But that offer left the table after the deadline to avert a strike passed. Stewart declined to discuss details about the proposal.
“That’s how they see these workers. A bargaining chip,” UAW President Shawn Fain said in a statement. “Belvidere Assembly was a profitable plant that just a few years ago supported around 5,000 workers and their families. Now that number is zero, and Stellantis wants to keep playing games.”
Nearly 1 in 10 of America’s unionized auto workers went on strike Friday. The strikes are limited for now to three assembly plants: a GM factory in Wentzville, Missouri, a Ford plant in Wayne, Michigan, near Detroit, and a Jeep plant run by Stellantis in Toledo, Ohio.
Automakers have since told some non-striking workers not to report to work, including 600 who were told not to report Friday to a Ford plant.
Politicians have been pushing automakers to consider workers who gave up pay and benefits to help their employers during the Great Recession.
“Now that our carmakers are enjoying robust profits, it’s time to do right by those same workers so the industry can emerge more united and competitive than ever,” former President Barack Obama said in a statement Saturday.
NEW YORK (AP) — The United Auto Workers said Saturday it had “reasonably productive conversations” with Ford, as its limited strike against the Big 3 automakers carried into a second day.
The union is trying to reach a deal with not only Ford but also General Motors and Stellantis for better pay in an era of big profits for the industry, which is trying to transition from gasoline-powered engines to electric vehicles.
Stellantis on Saturday also gave details about its most recent offer to the union, which brought its wage proposal roughly in line with its competitors. The owner of Chrysler said its offer would provide cumulative raises of nearly 21% for hourly wages, with an immediate 10% increase if a contract is ratified.
That, though, is still below the 36% increase over four years the UAW is seeking, along with other demands that would increase costs for auto companies.
Mark Stewart, chief operating officer for North America at Stellantis, on Saturday called it part of a “really competitive” overall proposal, as it tries to compete with non-union automakers outside the Big 3 that have lower costs.
Stewart also described a possible solution related to a plant in Belvidere, Illinois, that has already been idled, which is a big issue for the union. But that offer left the table after the deadline to avert a strike passed. Stewart declined to discuss details about the proposal.
“That’s how they see these workers. A bargaining chip,” UAW President Shawn Fain said in a statement. “Belvidere Assembly was a profitable plant that just a few years ago supported around 5,000 workers and their families. Now that number is zero, and Stellantis wants to keep playing games.”
Nearly 1 in 10 of America’s unionized auto workers went on strike Friday. The strikes are limited for now to three assembly plants: a GM factory in Wentzville, Missouri, a Ford plant in Wayne, Michigan, near Detroit, and a Jeep plant run by Stellantis in Toledo, Ohio.
Automakers have since told some non-striking workers not to report to work, including 600 who were told not to report Friday to a Ford plant.
Politicians have been pushing automakers to consider workers who gave up pay and benefits to help their employers during the Great Recession.
“Now that our carmakers are enjoying robust profits, it’s time to do right by those same workers so the industry can emerge more united and competitive than ever,” former President Barack Obama said in a statement Saturday.
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