UAW strike against Detroit automakers expands to more plants as negotiations continue

Geoff Bennett:

The United Auto Workers expanded its strike this week targeting some of the most profitable plants of Detroit's Big Three automakers.

The latest one started yesterday at a GM SUV factory with about 5,000 workers in Arlington, Texas.

Stephanie Sy has the latest on the strike now in its 41st day.

Stephanie Sy:

Geoff, the strikes now involve 46,000 workers at 40 assembly plants and parts centers around the country. There are reports today that Ford and the UAW could be moving closer to an agreement. But, so far, a deal with the Big Three automakers remains elusive.

For a look at where things stand, we're joined by David Shepardson of Reuters, who has been covering all of this closely.

David, thank you so much for joining us.

First, I want to ask you what you know about any developments in the UAW's contract negotiations with Ford. Are you hearing about any breakthroughs?

David Shepardson, Reuters:

Well, Ford has been the furthest along of the Detroit Three with the UAW. They have been intensely bargaining. They went late last night.

And so there is a real possibility they could announce an agreement, a tentative agreement, with Ford as early as tonight. Ford had previously said they were willing to go to a 23 percent pay hike over a little more than four years. The UAW has been pushing them to go up to at least 25 percent.

So I do think there's a very realistic chance we could see a deal as early as later tonight. Or it could — this could be another false alarm, but they are definitely moving to the closest point they have been in this nearly six weeks.

Stephanie Sy:

And how will that set the standard with the other two companies that they're negotiating with?

David Shepardson:

Yes, I think like, in the past — traditionally, the UAW has picked one company, reached an agreement with them, and the other two have not gone on strike.

In this case, the UAW opted to do this targeted strike of all three at the same time, the first time ever. So I do think a deal with Ford is going to set the template for a deal with GM and Stellantis. They're pretty close already, in terms of the proposals they have versus Ford. So it might take a few days or longer than that, but I think, ultimately, whatever deal with Ford is struck will set the benchmark for the other two.

Stephanie Sy:

OK.

So, what continue to be the top priorities are for Shawn Fain and union members? And are there some things that they have clearly been willing to concede on?

David Shepardson:

Sure.

I mean, this started out where the UAW was seeking a 40 percent pay raise over four years, a 32-hour workweek, a return of defined benefit pensions. So, by — on the other hand, the auto companies were offering somewhere around 14 to 15 percent pay hikes and were seeking some changes to work rules.

So, by all accounts, this deal, the one that was already on the table prior to whatever final deal gets reached, will be the most — the most lucrative ever for the unions, much better than what I think some analysts thought the union would get. But they're not getting some of the more transformative items, like a 32-hour workweek or a return of the defined benefit pension that they had sought and the union had given up about 15 years ago, when the industry was in real, real trouble.

Stephanie Sy:

You know, one of the things we have been looking at is how the union is concerned about the carmakers' transition to electric vehicles and their job security related to that.

And I know Shawn Fain wanted an agreement that unionizing workers would sort of happen automatically at any future electric battery plant stood up by the carmakers. Where are they on that issue? I know that was a sticky, tricky part, because it involved foreign companies as well.

David Shepardson:

Correct.

So, the Detroit automakers have these joint ventures with Korean battery companies to build the batteries, which ultimately, as the industry if stored electric vehicles, are going to replace the engines and the transmissions built for internal combustion vehicles.

And so, at a minimum, we're not going to see a full agreement, because most of these plants are not yet in place. I think, even if there is an agreement about including these workers under the master agreement, there's a lot of decisions and negotiating to be had about what they're going to get paid, what kind of benefits, what are the rights of workers to transfer from (Audio gap) there.

And so that issue may not get resolved for quite a bit.

Stephanie Sy:

David Shepardson with Reuters, thanks so much for being with us and for your reporting on this issue.

David Shepardson:

Thank you.