Global Economy

UAW strike: What is it and what are the workers demanding? Know all about the walkouts and companies’ response



The United Auto Workers’ strike against General Motors, Stellantis and Ford is spreading with 13,000 workers walking out of three assembly plants. The automobile workers went on an indefinite strike after the union’s contract with the companies came to an end at midnight on September 14. Workers at dozens of factories across 20 states joined the strike. The negotiations continued on Thursday, but it did not make any progress.

Strike at 38 more plants?

As the talks falter, the UAW announced that its members will join strikes at 38 more General Motors and Stellantis parts distribution centers. Another 5,600 workers have joined the strike. In other words, about 13% of the union’s 146,000 members are now on the picket lines. UAW President Shawn Fain said that Ford has met some of the union’s demands during negotiations this past week so there will be no additional strike there.

Detroit Three rejects demands

But the Detroit Three has declined to accept the demands. It said that the company can not afford to meet the union’s demands because they have to invest profits in a costly transition from gas-powered cars to electric vehicles. Tension escalated last week when the companies sacked about 1,000 workers saying that some factories are running short on parts because of the strike.

UAW demands 36% pay hike

The UAW went on strike demanding a 36% raise in general pay over four years. It also wants an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay and the restoration of traditional defined-benefit pensions for new hires. It is a contentious issue as the UAW workers hired after 2007 don’t receive defined-benefit pensions.

Companies on cost-cutting

Working conditions of automobile workers in the U.S.A. are not good. The union gave up the demand for general pay raises and lost cost-of-living wage increases to help the companies control costs. At present top-scale assembly workers earn $32.32 an hour, and temporary workers just under $17. But the full-time workers have received bonuses ranging from $9,716 at Ford to $14,760 at Stellantis.

FAQs:

What are the main demands of the UAW?
The United Auto Workers has demanded a 36% pay rise. It also wants an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay and the restoration of traditional defined-benefit pensions for new hires.

How many workers are on the automobile strike?
Initially, 13,000 workers of General Motors, Stellantis and Ford, working at three assembly lines went on strike. They were joined by 5,600 additional workers. About 13% of the union’s 146,000 members are now on the picket lines.

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