New York, US: Over 10,000 employees from three of the largest US carmakers have commenced strike action following the expiration of labor contracts, as announced by their union. Production has come to a halt at plants owned by General Motors (GM), Ford, and Stellantis.
The United Autoworkers Union (UAW) commented that the companies failed to propose satisfactory offers, leading to the strike. This industrial action could lead to elevated vehicle prices and considerable disruptions within the automotive industry.
Shawn Fain, UAW’s president, stated that the responsibility now lies with the companies to settle the dispute. He emphasized, “When they start taking care of their workers it will end.”
Stoppages began at plants including GM’s facility in Wentzville, Missouri, Ford’s Bronco plant in Michigan, and Stellantis’s Jeep plant in Toledo, Ohio. All these plants are pivotal in producing some of the most lucrative vehicles for these companies.
Though other plants will remain operational, the UAW did not dismiss the possibility of expanding the strikes.
President Joe Biden communicated with Mr. Fain regarding the ongoing negotiations. The union’s demands include a 40% salary hike over a span of four years, a four-day working week, reinstating automatic wage increases linked to inflation, and stricter guidelines on the duration workers are categorized as “temporary.”
Last month, the union saw a significant 97% of its members voting in favor of the strike.
One of the workers, Paul Raczka, emphasized that given the companies’ record profits over the years, it’s time they recognize the efforts of the workforce.
Ford’s CEO, Jim Farley, expressed hope to prevent the strike but also mentioned a limit to the company’s concessions.
Financial estimates suggest that a 10-day strike could cause a loss of nearly $1 billion for the firms involved and almost $900 million in lost wages for workers.
Despite the challenges of the strike, many workers believe in the cause. Jessie Kelly, a GM worker, mentioned, “At the end of the day, we all want to work for a corporation that is making good money. We just want our fair share of that.”
Analysts predict that the strike, combined with the existing low supply of cars due to pandemic-induced shortages, could lead to increased vehicle prices.
The last major strike in the US car industry was in 2019, when GM workers went on a six-week strike.
Additional reporting by Michelle Fleury and Nathalie Jimenez in Detroit.
© 2023 BBC.
