Key takeaways:
- The United Auto Workers (UAW) union is preparing to take action against the “Big Three” automakers, Ford, GM and Chrysler, if contract agreements cannot be reached by Friday.
- The union is seeking a wage increase of up to 40% (amounting to 46% compounded) over the length of the next four-year contracts, along with full pay for 32-hour workweeks, better retirement pensions and improved health care.
- If an agreement is not reached, the union has said it is prepared to take action, potentially striking up to 146,000 workers or disrupting production at select facilities.
The United Auto Workers (UAW) union is preparing to take action against the “Big Three” automakers, Ford, GM and Chrysler, if contract agreements cannot be reached by Friday. UAW President Shawn Fain has laid out the union’s strategy for striking the automakers, which includes targeted walkouts to keep the companies off-balance.
The union is seeking a wage increase of up to 40% (amounting to 46% compounded) over the length of the next four-year contracts, along with full pay for 32-hour workweeks, better retirement pensions and improved health care. Fain has said that the union’s demands are ambitious, but that they are driven by the companies’ profits.
Since 2019, the last time the union negotiated contracts with the automakers, annual gross profits have risen by 34% at Ford and 50% at GM. The union has said that it will strike any company where they don’t have a satisfactory deal in place by the deadline.
Late-stage negotiations have revolved heavily around compensation and benefits, and the union has the potential to strike up to 146,000 workers if agreements cannot be reached. The union has also said that it is possible they will decide to strike select facilities to disrupt production rather than wage a more costly concurrent work stoppage across an entire company or all three.
The union and the automakers are now in a race against the clock to reach a deal before the Friday deadline. If an agreement is not reached, the union has said it is prepared to take action.
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