The American union of employees of three major automobile manufacturers launched an unprecedented simultaneous strike in three factories in the United States on the night of Thursday to Friday, failing to reach an agreement in the negotiations relating in particular to the increase in wages.
In front of the Ford site in the Detroit area, horns and applause greeted the arrival of the president of the United Auto Workers (UAW) union, Shawn Fain, who had announced earlier that he had chosen to launch this movement three sites, one in each group (General Motors, Stellantis and Ford).
“Tonight, for the first time in our history, we are going to strike among the “big three” (manufacturers),” warned the boss of the UAW, faced with the blockage of negotiations on collective agreements and in particular on the increase salaries.
The sites concerned are assembly plants: in Wentzville (Missouri) for GM, in Toledo (Ohio) for the Stellantis Jeep factory (resulting from the merger of the French PSA and the American Chrysler) and in Wayne ( Michigan) for Ford. Around 12,700 employees are expected to walk out on Friday, according to the union.
But the movement could spread, underlined Shawn Fain, who urged the approximately 146,000 members of his organization working for these manufacturers to be ready to strike depending on the evolution of the negotiations.
Prolonged or expanded social conflict could have political consequences for President Joe Biden, whose economic record is criticized, particularly due to stubborn inflation.
A little over a year before the presidential election, he is walking on eggshells, between his stated support for unions and the specter of a blow to the American economy.
Revaluations requested
Negotiations between unions and builders began two months ago to develop new collective agreements for four years. Employees in the sector are demanding salary increases and more benefits, while automakers, who have recorded profits in recent years, have tightened the screws after the 2008 financial crisis.
The last strike in the sector, which dates back to 2019, only affected GM. It lasted six weeks.
The UAW is demanding a wage increase of some 40% over four years, while the three manufacturers have not gone further than 20% at most, according to the union.
“This company has been making money off our work for years. I think it’s time she gave something back,” testified Paul Sievert, an employee at Ford’s Wayne plant for 29 years.
The three historic giants of Detroit notably also refused to grant additional days of leave and to increase pensions, provided by funds specific to each company.
“Historic strike”
In a statement released immediately, Ford said it was “absolutely committed to reaching an agreement that rewards employees and protects Ford’s ability to invest for the future.”
According to the group, the counter-proposal sent Thursday evening by the UAW “showed few differences from the initial demands” of the union. Ford called the offer he made to the union more than two days ago “historically generous with significant wage increases” and other benefits.
The group’s boss, Jim Farley, criticized Shawn Fain on Thursday for wanting to “make a historic strike in all three groups, but we want to make history with a historic agreement.”
The president of General Motors, Mark Reuss, had estimated shortly before on the CNBC channel that a strike would constitute “a very, very sad outcome” with significant consequences.
“We are extremely disappointed by the refusal of UAW leaders to engage responsibly to reach a fair agreement in the best interests of our employees, their families and our customers,” Stellantis responded in a statement.
According to the consulting firm Anderson Economic Group (AEG), a ten-day strike could represent more than five billion dollars in lost revenue for the American economy.
Trying to clear the land, Joe Biden spoke by telephone Thursday evening to Shawn Fain and the leaders of the builders to take stock.
In mid-August, he pleaded for a “win-win” and “fair” agreement, strengthening workers’ rights during the transition to electric vehicles.