US: Auto strike against Detroit automakers spreads to Chicago and Lansing

The United Auto Workers (UAW) on Friday (Sep 29) expanded its two-week strikes against Detroit automakers, adding 7,000 workers at a Ford plant in Chicago and a General Motors assembly factory near Lansing. Addressing workers through video conference, UAW President Shawn Fain said that negotiations had not broken down, but the strikes were escalated because Ford and GM refused to make meaningful progress in contract talks.

Jeep maker Stellantis was spared from the third round of strikes, a report by the news agency Associated Press said.

“Sadly, despite our willingness to bargain, Ford and GM have refused to make meaningful progress at the table,” Fain told the striking workers, adding that union bargainers were still talking to all three companies, and he’s hopeful they could reach deals.

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Stellantis made significant progress: UAW

Stellantis, he said, made significant progress “moments” before the Facebook Live broadcast by agreeing to unspecified cost-of-living pay raises, the right not to cross a picket line, and the right to strike over plant closures. “We are excited about this momentum at Stellantis and hope it continues,” the UAW president said.

In a statement, Stellantis said it was committed to working through these issues "in an expeditious manner to reach a fair and responsible agreement that gets everyone back to work as soon as possible.”

For long, automakers said that they were willing to give raises to workers, but feared that too rich of a contract would drive up the prices of their vehicles, making them higher than those made at non-union American plants run by foreign automakers.

The UAW, meanwhile, has countered that labour costs are only 4% to 5% of the cost of a vehicle, and the companies are making billions in profits and can afford big raises.

New strikes target big money maker vehicles of GM, Ford

The union has vowed to hit automakers harder if it does not receive what it calls substantially improved contract offers as part of an unprecedented, simultaneous labour campaign against all three Detroit automakers.

The UAW went on strike on September 15 and initially targeted one assembly plant from each company. About 25,000, or about 17%, of the union’s 146,000 workers at the three automakers are on strike.

It has structured its walkouts in a way that has allowed the companies to keep making pickup trucks and large SUVs which are their most profitable vehicles. However, the new strikes against GM and Ford target SUVs that have been the big money makers for both companies.

(With inputs from agencies)

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