As reported by AP, this move is aimed at increasing pressure on the companies to enhance their proposals. This marks the second occasion the union has expanded the strikes, which originally commenced two weeks ago at three assembly plants. The most recent expansion included a Ford plant in Chicago and a General Motors factory near Lansing.

AP reported that Union President Shawn Fain told workers in a video appearance that 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.

Also Read: United Auto Workers present new counter-proposal to Chrysler parent Stellantis ahead of planned strike

Ford and GM responded strongly as tensions in the verbal dispute with the union escalated further. Ford alleged that the UAW was delaying an agreement primarily due to the matter of union representation at electric vehicle battery facilities, many of which are partnerships with a Korean manufacturer.

“We still have time to reach an agreement and avert a real disaster,” Ford CEO Jim Farley said. The company said the work stoppages are starting to affect fragile companies that make parts for the factories on strike.

General Motors CEO Mary Barra blamed union leaders for the impasse.

“UAW leadership continues to expand the strike while upping the rhetoric and the theatrics. It’s clear that there is no real intent to get to an agreement,” Barra said in a statement, reported AP.

“The GM plant in Delta Township, near Lansing, makes large crossover SUVs such as the Chevrolet Traverse and Buick Enclave. A nearby metal parts stamping plant will remain open”, Fain said.

The Ford factory in Chicago is responsible for manufacturing the Ford Explorer, Explorer Police Interceptors, and the Lincoln Aviator SUV.

Fain said union bargainers are still talking to the companies, and he was hopeful they could reach deals.

Also Read: UAW threatens to expand strike against Ford, GM, and Chrysler

Stellantis, he said, made significant progress Friday by agreeing to unspecified cost-of-living raises, the right not to cross a picket line and the right to strike over plant closures.

Raneal Edwards, a longtime GM employee who works at the Lansing-area factory, said she was “shocked but happy” to hear that her plant would join the strike.

“I feel like they don’t understand that this is about more than wages,” Edwards said. “It’s about having security at our jobs.”

Edwards said the UAW’s strategy of slowly adding more plants will work. “I love it because it keeps us on our toes. No one knows what’s next,” she said.

However, in a message addressed to employees on Friday, Gerald Johnson, the Chief of Manufacturing at GM, mentioned that the company has not yet received a response or counteroffer from union leaders regarding the economic proposal put forth on September 21st.

Automakers have consistently expressed their willingness to provide salary increases, but they express concerns that a contract with high costs could result in their vehicles being priced higher than those produced at nonunion facilities in the United States that are operated by foreign corporations.

Farley, the CEO of Ford, alleged that the union was using the agreement as leverage, particularly concerning the representation of workers in battery plants. During a conference call with industry analysts, he pointed out that the high wages expected at these battery plants could potentially increase the cost of Ford’s electric vehicles, making them more expensive than those offered by competitors like Tesla and others.

Also Read: UAW Urges Automakers to Cut Reliance on Temp Workers

“Record contract? No problem. Mortgaging our future? That’s a big problem. We will never do it,” Farley said.

Ford’s battery plants, Farley said, have not been built. “They have not been organized by the UAW yet because the workers haven’t been hired and won’t be for many years to come,” he said.

Fain later accused Farley of lying and said the union gave Ford a counteroffer Monday but has not heard back. He stressed that there is no impasse, although they’re far apart on economic issues such as defined-benefit pensions for all workers and health insurance for retirees.

“We’ve had good discussions. There’s times we think we’re getting somewhere, and then things just stop,” he said. Fain also said “job security in the EV transition” remains an issue.

The union insists that labor expenses are only 4% to 5% of the cost of a vehicle, and that the companies are making billions in profits and can afford big raises.

Wedbush analyst Dan Ives said the expanded strikes show both sides are digging in for a potentially long battle.

Ives wrote in a note to investors that President Joe Biden’s administration is watching union demands collide with his push for cleaner electric vehicles. Biden, who has billed himself as the most union-friendly president in history, traveled Tuesday to the Detroit area to walk picket lines with workers at a GM parts warehouse.

Republican front-runner Donald Trump also traveled to the Detroit area this week for a rally at a nonunion parts maker.

Offers on the table from the companies will add $3,000 to $5,000 to the cost of an average electric vehicle that would be passed on to consumers, Ives wrote.

The electric vehicle battery plants are a huge issue for the union’s future. Some industry executives, including Farley, say building EVs will take up to 40% fewer workers because they have fewer parts. So the union is looking to organize battery plants and win top wages so displaced workers have somewhere to go, especially those making combustion engines.

Other industry officials, including GM CEO Mary Barra, say there will be enough jobs for all as the industry moves away from gasoline vehicles.

The automakers’ last known wage offers were around 20% over the life of a four-year contract, a little more than half of what the union has demanded. Other contract improvements, such as cost of living increases, restoration of defined-benefit pensions for newly hired workers and an end to wage tiers within the union are also on the table.

The union commenced its strike on September 15th, initially focusing on one assembly plant from each of the three companies. Then, during the previous week, it included 38 parts distribution centers operated by GM and Stellantis. At that point, Ford was exempt from this expansion because negotiations with the union were advancing positively.

AP reported that the union has organized its strikes in a way that allows the companies to continue producing their high-demand, high-profit vehicles such as big pickup trucks and SUVs. Previously, it had halted production at assembly plants in Missouri, Ohio, and Michigan, which manufacture midsize pickups, commercial vans, and midsize SUVs—vehicles that aren’t as lucrative as the larger ones.

AP further noted that the recent strikes directed at GM and Ford are focused on crossover SUVs, which are known to be significant sources of revenue for both automakers. In the past, the union would choose one company as the primary strike target and negotiate a contract agreement with that company, which would then serve as a model for the others.

However, this year, Fain introduced a new approach by targeting a select number of facilities at all three automakers. As a result of these strikes, approximately 25,000 workers, or roughly 17% of the union’s total workforce of 146,000 employees at these three automakers, are currently participating in the strikes.

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Updated: 30 Sep 2023, 06:30 AM IST