(New York) The United Auto Workers (UAW) union decided on Monday to shut down a second major factory, a Stellantis site in Michigan, as part of the strike affecting the three major American automobile manufacturers since mid-September.
“On Monday morning, 6,800 UAW members at the Sterling Heights Assembly Plant (SHAP) joined the strike, halting production at the largest and most lucrative Stellantis plant” in the United States, announced the union in a press release.
This brings the total strikers at Ford, General Motors and Stellantis to more than 40,000, out of their 146,000 UAW employees. This is the first time that the “Big Three”, the three historic American manufacturers, have been targeted at the same time.
Stellantis said it was “outraged” by this decision, saying in a statement that “the UAW’s disturbing strategy of “hurting”” the three manufacturers “will have lasting consequences” on the sector and on the local and national economies.
The group explains that it submitted an improved offer on Thursday morning, including a salary increase of 23% over four years, an increase of almost 50% in contributions to the retirement savings plan and guarantees in terms of job security.
Referring to “seemingly constructive conversations” which followed, he said he was still waiting for a counter-proposal.
According to a source close to the negotiations, the negotiations are “very active” and “intense”.
Since the launch of the strike, the UAW has distributed good and bad points as discussions evolve, extending the list of sites on strike in the event of resistance from one or more groups and maintaining a status quo in the event of advances.
It targeted secondary factories until October 11 when it struck a major blow with the shutdown of the Kentucky Truck Plant (KTP), Ford’s largest factory. It generates 25 billion dollars in turnover per year.
The ax fell this week on Stellantis (owner of Chrysler, Jeep, Ram, Dodge, Peugeot, etc.) due to persistent “gaps” in its latest proposal.
Its SHAP factory, of more than 460,000 m2produces one of the group’s best-selling vehicles: the Ram 1500 pickup truck. Stellantis did not wish to provide details on its production.
According to the specialist site Kelley Blue Book, the base 2024 model is sold from $38,750, but can rise to more than $65,000 depending on the version.
“Lagging behind”
“Despite having the highest turnover, the highest profits [en Amérique du Nord et dans le monde]the largest operating margins and the most cash in reserve, Stellantis continues to lag behind both Ford and General Motors,” the union wrote Monday.
According to him, the group presented the “worst offer” concerning in particular salary increases, the remuneration of temporary workers and even measures to adapt to the cost of living (COLA).
Officials from the SHAP union office were busy Monday morning at the factory to organize the logistics linked to the walkout, in particular for the registration of employees in the union’s aid fund.
Strikers, as well as workers dismissed due to lack of activity in non-striking sites, receive $500 per week.
This movement “is intended to help us obtain a fair and equitable collective agreement,” Michael Spencer, vice-president of this union branch, explained to AFP. “They are going in the right direction, but they are not there yet.” “It is time for them to be serious around the negotiating table,” he argued.
Since the start of negotiations in July, manufacturers have revised their proposals upwards – now calling them “record” – but not enough for the union.
Mr. Fain acknowledged Friday that the offers were unprecedented, but “they come after decades of record declines.”
Kumar Galhotra, a Ford executive, said on October 12 that the group had “reached the limit.” He touted an “incredibly positive” offer that would lift Ford staff into the top 25 percent of U.S. jobs in terms of hourly wages and benefits.