United Auto Workers (UAW) members employed by General Motors, Ford and Stellantis have decisively voted to authorize a strike if a satisfactory agreement cannot be reached, according to a UAW announcement on Friday. Ninety-seven percent of the approximately 150,000 members across the Big Three approved of the potential strike. However, the final count is still being confirmed.
With the current four-year labor agreement between UAW and the Big Three set to expire on September 14, the looming possibility of a strike could have significant repercussions for General Motors, Ford and Stellantis, potentially resulting in substantial combined losses.
Amid the auto industry's notable transition towards electric vehicles, the UAW is making substantial demands for change. A key component of their demands includes the cessation of tiered wages and benefits, as well as the revival of cost-of-living allowances, defined benefit pensions and retiree healthcare. Additionally, the union is seeking the right to strike against plant closures, better retiree benefits and increased paid time off.
The proposed labor agreement by the UAW would cover an estimated 150,000 hourly workers employed by the three automakers. The current top hourly wages for UAW members stand at around $32. However, the new proposal is aiming to significantly elevate top hourly wages to approximately $47, marking an impressive increase of nearly 46%.
The root of UAW members' discontent can be traced back to labor concessions made in the wake of the 2008 financial crisis and the subsequent bankruptcies of GM and Chrysler, which are now part of Stellantis. Over the period spanning 2013 to 2022, the UAW estimates the combined profits of the Big Three automakers to be almost $250 billion. Seeking a more equitable distribution, autoworkers are prepared to leverage the power of striking to assert their rightful demands.
UAW President Shawn Fain conveyed members' sentiments, stating, "Our union’s membership is clearly fed up with living paycheck-to-paycheck while the corporate elite and billionaire class continue to make out like bandits."
While the White House urged mutual understanding ahead of the UAW contract's impending expiration next month, a separate agreement emerged between Ultium—the GM-LG Energy Solution EV battery joint venture—and the UAW. This agreement led to an average wage increase of 25% for over 1,100 workers at the Ohio battery plant, signifying a significant stride in the UAW's involvement within the EV sector.
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