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Tipsheet

Ford, Stellantis and GM Break Their Silence on Autoworker Strike

AP Photo/Paul Sancya

For the first time, the United States' three largest automakers are on strike at the same time after workers and the Big 3 failed to reach a new labor agreement before the contract with employees represented by the United Auto Workers (UAW) expired. 

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The UAW announced the looming strike late on Thursday night after General Motors, Ford, and Stellantis unsuccessfully agreed to terms calling for a 36 percent hike in pay for all employees over the next four years. 

"Tonight, for the first time in our history, we will strike all three of the Big Three at once," UAW President Shawn Fain said in a Facebook Live address, adding that the roughly 12,700 employees will immediately walk off the job site. 

Union representatives argue that the pay increase is justified because of a comparable increase for company executives. The auto workers also demand a four-day workweek and more job protections, including the right to strike over plant closings. 

However, despite wanting only to work 32 hours a week, the auto workers still expect to be paid equivalent to 40 hours. 

"The locals that are not yet called to join the stand-up strike will continue working under an expired agreement," Fain continued. 

Ford CEO Jim Farley told CBS News that if the company had agreed to the union's demands, it would have lost $15 billion during the last decade, resulting in going bankrupt. 

Stellantis said it was "extremely disappointed by the UAW leadership's refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families, and our customers," adding that they are immediately putting the company in contingency mode. 

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GM CEO Mary Barr claimed her company has been in talks with UAW since July in hopes of securing a deal. 

The automaker said they received over 1,000 demands from the labor group, adding, "We have a historic offer on the table, and we're at the table right now, ready to keep going."

All three leaders said they've made reasonable counteroffers and are willing to negotiate further. 

President Joe Biden has offered little support for the auto union as he continues to tout his Inflation Reduction Act, which hands out billions of dollars in taxpayer subsidies to auto companies. 

"UAW members feel abandoned by the Democratic Party," former UAW President Bob King said. "I think there's a segment of the Democratic Party that sees itself as serving corporations rather than the common good … we've had a lot of disappointments." 

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