Clocking out… The United Auto Workers began an unprecedented strike against all of the Detroit Three automakers (GM, Ford, and Dodge-maker Stellantis) on Friday — a first in the union’s 88-year history. As the work stoppage enters its fifth day, both sides appear to be digging in for a lengthy showdown over pay and pensions.
Targeted: To start, about 13K of the UAW’s 145K workers are striking at three plants (one per company). Those plants make up ~9% of the automakers’ North American production, and are the manufacturing hubs of some of their most profitable whips, including the Ford Bronco and the Jeep Wrangler.
Ripple effects: GM said it would likely pause work at a plant with ~2K workers because the targeted strikes were causing parts shortages. Ford told 600 workers at one of its plants to stay home, citing strike “knock-on effects.”
It’s a marathon… Negotiations are moving at a school-zone pace. Over the weekend, the UAW rejected a Stellantis proposal that would’ve boosted pay 21% over four years (the union had asked for a 36% raise). By limiting strikes to a few key plants, the UAW is stretching the lifespan of its $825M fund that pays picketing workers. While most UAW members are still reporting to work for now, the strike could be costly: industry experts say shutting down a single engine or transmission plant per automaker could idle nearly 75% of their US assembly plants.
#HotStrikeSummer is rolling into long strike fall… The UAW’s targeted strikes are a sign that the union is prepared for a lengthy showdown. Meanwhile, the Hollywood writers’ strike is less than two weeks away from becoming the longest in the union’s history. Lengthy strikes can hurt both workers and companies, but can yield industry-shifting results when one side cedes.