The union of three major American automakers launched a strike unprecedented simultaneous in three plants of USA to demand wage increases, threatening the economy and the push for the president’s re-election Joe Biden.
In front of the Ford plant in Wayne, in the Detroit region (Michigan), horns and applause greeted the arrival of the president of the powerful United Auto Workers (UAW) union, Shawn Fain, who shortly before had announced the three sites chosen to start the strike, one in each group involved: General Motors, Stellantis and Ford.
“Tonight, for the first time in our history, we will strike at the same time in the ‘Big Three’”Fain had said shortly before the deadline to reach an agreement for the collective agreement, in particular on the increase in salaries.
In addition to Wayne, the other two centers that are going on strike are assembly plants in Wentzville (Missouri), of GM, and in Toledo (Ohio), of Stellantis. According to the union, around 12,700 employees will be on strike this Friday.
But the movement could spread, stressed Fain, who urged the approximately 146,000 union members who work for these manufacturers to be willing to strike depending on the evolution of the negotiations.
A prolonged social conflict could have political consequences for Biden, whose management of the economy is criticized, particularly due to persistent inflation.
40% increase
Campaigning for re-election in 2024, Biden is moving on thorny terrain and must balance between expressed support for unions and fear about the consequences of this strike for the American economy.
The president plans to speak on the topic this Friday.
According to the consulting firm Anderson Economic Group (AEG), a ten-day strike could represent more than US$5 billion in lost revenue for the US economy.
Negotiations between unions and builders to draw up new four-year collective agreements began two months ago.
Employees in the sector are demanding wage increases and more benefits, while manufacturers, which have posted profits in recent years, tightened the screws after the 2008 financial crisis.
The last strike in the sector, which dates back to 2019, only affected GM. The strike lasted six weeks.
The UAW demands a wage increase of around 40% in four years, while the three manufacturers have not exceeded 20% (Ford), according to the union.
“This company has been generating money for years thanks to us,” said Paul Sievert, an employee who has worked at Ford’s Wayne plant for 29 years. “I think it’s time they gave us something in return.”
Detroit’s three historic giants also refused to grant additional vacation days and increase pensions, provided by specific funds from each company.
“Competitive” offer
In a statement, Ford said it was “absolutely committed to reaching an agreement that rewards employees and protects Ford’s ability to invest in the future.”
The group called the offer it made to the union more than two days ago “historically generous with significant wage increases” and other benefits.
Questioned Friday on CNN, GM CEO Mary Barra defended the manufacturers’ proposals, which include “not only a 20% increase in gross salary, but also profit sharing, world-class healthcare and several other features.”
“I think we have a very competitive offer on the table,” he claimed.
The company Stellantis, meanwhile, said in a statement that it was “extremely disappointed by the refusal of UAW leaders to responsibly engage in reaching a fair agreement.”
Trying to calm the waters, Biden spoke by phone Thursday night with Fain and builder leaders.
In mid-August, he advocated for an agreement “fair” and in which everyone wins, strengthening workers’ rights during the transition to electric vehicles.
Source: AFP
Source: Gestion
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