United Auto Workers still on strike

"On Sep. 15, 2023, the United Auto Workers (UAW) were unable to settle a deal with automakers Ford Motor Company, General Motors, and Stellantis, informally called the Detroit Three, setting off the first strike against all three in 80 years.

Founded in 1935, UAW represents workers from the U.S, Puerto Rico, and Canada. Since then, the union has had a long history of strikes, earning concessions like employer-paid health insurance plans and cost-of-living allowances. This year, after decades of dissatisfaction with low wages, little paid time off, and the tiered wages system, 97% of union members approved of authorizing a strike if the union and the Detroit Three were unable to settle on a fair labor contract.

“They’re absolutely rolling in the money. They’re competing for who gets the biggest executive compensation package,” said UAW president Shawn Fain in a YouTube video about CEO compensation.

So far, the union has gone on strike in several auto company plants, such as Michigan, Ohio, Missouri, and Illinois. Specific locations targetted include the Ford Michigan Assembly Plant in Wayne, Stellantis' Toledo Assembly Complex in Ohio, General Motors' Wentzville Assembly in Missouri, and, most recently, the Kentucky facility, with a total of about 34,000 U.S autoworkers on strike, and just under 5,000 fired as the strike enters its fifth week.

Senior Ford executive Kumor Galhotra claimed that Ford was “at the limit” of what it could spend on higher wages and benefits for the UAW. Its latest offer included a 23% wage increase through early 2028, higher than GM or Stellantis has offered. Chairman Bill Ford urged the UAW to end the strike and settle on an agreement.

“We can stop this now," Ford said. "We need to come together to bring an end to this acrimonious round of talks."

However, the union has repeatedly spoken out about the large gulf between CEO and worker pay, citing it as a key reason for protests and claiming that the Detroit Three can afford to pay higher wages. Fain has pointed out a 40% rise in automaker CEO pay since 2019 compared to a 6% increase in worker pay. In 2022, the Detroit Three CEOs made above $20 million individually.

“The union seems to be arguing an equity issue, especially in light of the sacrifices the workers needed to make in past negotiations,” stated business administration and law professor Cindy Schipani to the Minnesota Reformer. “Of course, the CEO’s job isn’t comparable to the job of the average worker, but I suspect the UAW may believe it has some leverage. If the company can afford to raise the salary of the top executive at roughly 40% over 4 years, why not also grant the rank and file similar increases?” 

The UAW has amassed the money to support all striking workers for 11 weeks, with no sign of the strike ending soon, and few worker demands being met by the Detroit Three.

“They’re going to have to address ending tiers,” Fain stated to MSNBC. “They’re going to have to address the pay rates, cost of living allowance. The majority of our workers now do not have any retirement security."