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September 14 marks a historical date for the UAW workers who last went on strike in 2019—the longest UAW strike since 1970. History is set to repeat itself.

Multinational corporations make good money but rarely do the benefits of a flourishing industry trickle down fairly to the workers who make it possible. The 2023 SAG-AFTRA strike has been much talked about in recent news, following big names in Hollywood joining in to support workers who presented the industry with their concerns about fair treatment and wages. Although the strike doesn’t seem to be approaching its end anytime soon, one can sense another area of unrest on the horizon with the UAW strike date fast approaching.

What is the UAW?

Founded in 1935, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, also known as the United Auto Workers (UAW), is a labor union for workers in the United States, Canada, and Puerto Rico. They support 400,000 active members and represent about 600 local unions, along with a robust retired member community. UAW members have fought for several worker benefits such as employer-paid health insurance plans and job and income security provisions.

When Does the UAW Plan to Strike?

With President Shawn Fain at the helm, the UAW is soon set to go on strike against the Detroit Three if contract negotiations do not succeed by the UAW strike deadline on September 14.

What Are the Chances of a UAW Strike?

Despite U.S. President Biden’s reassurances that the strike “will not happen”, UAW members are gearing up for the strike if a new contract does not meet their requirements.

“Maybe the companies are planning on walking in and giving us our demands on the night before. I don’t know but he’s on the inside of something I don’t know about,” Fain was quoted as saying in a Fox2 Detroit report.

The UAW president is said to be willing to take 150,000 auto workers out of factories if necessary, to prove their commitment to their demands. It is unclear what form the strike might take as yet, but the impact will be drastic if the ongoing negotiations with the three companies fall through.

Why is the UAW on Strike?

The UAW worker strike does not come as a surprise as the national contracts between the UAW union and Ford Motor, General Motors, and Stellantis are set to expire on the strike date announced—11:59 pm on September 14.

Having established that it is a hard deadline that they strictly aim to maintain, the union has indicated its seriousness by taking matters to the National Labor Relations Board (NLRB). Unfair labor practice charges have been filed against Stellantis and GM, for not responding in a timely manner or working with them in good faith, which Stellantis has referred to as a “distraction from important work”, as per a report from CNBC.

Ford has made its counter-proposal that includes details like a 9% wage increase over the four-year term of the deal as opposed to the double-digit wage increase the union has asked for. Other additions to the proposal were noted as “insulting” by Fain, after Ford rejected the UAW strike demands of job security, removal of wage tiers, COLA restoration, etc.

What Exactly are the UAW Strike Demands?

Although Fain’s leadership has been called aggressive, he has stated that a strike can be avoided if all parties show up and prepare themselves to bargain. Citing the big three’s surging revenue and profits, the UAW workers expect a bigger share of benefits with strike demands that they believe all three companies can afford.

Sources claim that the UAW strike demands include a 46% raise from GM, along with a 32-hour week with 40 hours of pay. The restoration of traditional pensions is also believed to be on the list. Some of the other expectations listed on the UAW website include:

Eliminating tiers Restoring Cost of Living Adjustments (COLA) Establishing retiree medical benefits and increasing retiree pay Allowing workers the right to strike following plant closures Working family protection programs Ending the abuse of temporary workers

How Will the Strike affect Ford, General Motors, and Stellantis?

Analysis by Anderson Economic Group (AEG) has indicated that if UAW workers strike against all three companies, a 10-day strike could lead to manufacturer losses of $989 million and wage losses of $859 million overall. With 97% of the UAW’s Big Three workers in favor of the strike, the companies have little time remaining to make their move.

When Was the Last UAW Strike?

The UAW strike in 2023 is not the first time the union has locked horns with General Motors. Its last strike in 2019 lasted six weeks, and the contract that was arrived at was used in further negotiations with Ford and then-Chrysler (which later became Stellantis). The losses to GM were significant and unless the company, and its rivals, arrive at an agreement soon, the UAW strike deadline might soon pass with similar results.

The post Why is the UAW on Strike? appeared first on The HR Digest.

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