
In a bold move against Detroit’s biggest automakers, the United Auto Workers Union has intensified its ongoing strikes. The latest addition to the strike list is the factory that produces Ram pickup trucks for Stellantis.
On Monday morning, an estimated 6,800 union members walked out, effectively halting operations at the Sterling Heights Assembly Plant in Michigan. This plant is considered a major profit-generating site for Stellantis.
The latest strike comes on the heels of union president Shawn Fain’s report of progress in talks with General Motors and Stellantis. However, he cautioned that the offers on the table must be improved. A disappointing development was the lack of progress with Ford, despite their assertion of having proposed the most lucrative offer.
Comprising each company, about 41,000 workers are now taking part in the strikes, affecting seven assembly plants and 38 parts warehouses. The walkout, in its sixth week, has disrupted about 28 per cent of work at the aforementioned companies.
Despite an improved offer last week, General Motors and Ford were fortunate to avoid the recent severity of the situation. The UAW had initially shied away from striking at plants producing pickups and large SUVs – the vehicles that yield the companies their highest profits. However, the dynamics changed two weeks ago when a critical Ford heavy-duty pickup and SUV plant in Louisville, Kentucky was targeted by the UAW.
Traditionally, the union has selected a specific company to strike against, reaching an agreement that will then serve as a framework for the others.
The union has asserted that despite Stellantis generating the highest revenue and profits amongst the three companies, their offer still lags behind Ford and General Motor’s. Criticisms persist particularly around the cost of living raises, pace of workers’ progression to top pay, temporary worker pay, and conversion to full time jobs.
Stellantis, however, responded with evident irritation, expressing outrage over the Sterling Heights plant’s inclusion in the strike list, especially since they had recently improved their offer. The terms included a 23 percent wage boost over four years, almost doubling retirement savings contributions, and added job security.
Sadly, Stellantis felt this increase did little to quell the strike actions but further harmed the entire automotive industry and the broader economy. They argue that the insistent strikes are offering an advantage to non-union competition, thereby jeopardizing the companies’ ability to invest and grow.
Committed to their cause, the union expects to put forth counter proposals to Stellantis and GM soon.
DeSean McKinley, a nine-year veteran at the Sterling Heights plant, stands by the union’s actions, despite his surprise over the recent strike. By bold actions such as the shutdown of the Stellantis factory, the union is demonstrating to Ford and GM the urgent need to enhance their offers.
Wedbush analyst, Dan Ives, foresees tough negotiations in the days to come. Despite a potential deal appearing likely, he predicts that companies can and will need to shell out more.
Union president, Shawn Fain, asserts that the companies can give more and retrieve their offers for re-issue moments later after claiming they’ve made the best possible proposal. Despite the companies’ insistence on having made generous offers, Fain insists that they fall short in compensating the ground lost by workers over the past two decades. The union’s fight, he sternly states, is far from over with moves yet to be made on the board.