What autoworkers are demanding as strike against Detroit’s ‘Big 3’ looms

Amna Nawa:

In just a little over 24 hours, nearly 150,000 autoworkers could go on strike against the so-called Big Three automakers here in the U.S.

As Laura Barrón-López explains, the union and manufacturers are far apart on some key issues that may be crucial to the future of the industry and to labor's broader goals.

Laura Barrón-López:

Amna, the deadline is midnight tomorrow, and the United Auto Workers are pushing for big changes, including a substantial wage hike of 30 percent over four years, eliminating wage tiers, which pay very different rates per hour, a shortened 32-hour workweek, while keeping pay at a 40-hour level, and union representation at 10 electric vehicle factories.

But the Big Three automakers, GM, Ford and Stellantis, say the costly transition to electric vehicles makes it too difficult to meet these demands.

New York Times reporter Neal Boudette has covered the auto industry for two decades, and he joins me now.

Neal, thanks.

Neal Boudette, The New York Times:

Glad to be here.

Laura Barrón-López:

We just got an update from Shawn Fain, the president of the United Auto Workers, and here's what he had to say.

Shawn Fain, President, United Auto Workers:

We're making progress at each of the three negotiating tables, but, as you just heard, we're still very far apart on our key priorities. From job security, to ending tiers, from cost of living allowance, to wage increases, we do not yet have offers on the table that reflect the sacrifice and contributions our members have made to these companies.

To win, we're likely going to have to take action.

Laura Barrón-López:

Neal, as you just heard, an agreement seems pretty elusive there. Is a strike inevitable at this point?

Neal Boudette:

It's pretty darn close to inevitable, probably 99 percent chance, I think.

They remain far apart on wages, although they have had some movement there. But on the other issues, in terms of work hours and other work conditions, retiree pensions, they're very far apart there. And both sides are pretty dug in, in their positions.

Laura Barrón-López:

And one of the big dividing lines here is the call for substantial raises, 30 percent over four years, and an end to that tiered wage system, where some are paid less than half of what others are paid.

And so, if that tiered system ultimately is ended, what type of impact would it have for these workers' livelihoods?

Neal Boudette:

Well, there are a lot of workers who are making $20 to $25 an hour, some even less than $20.

And this is tough work for that kind of pay. And, also, they're producing expensive vehicles, $50,000 pickup trucks. So that's a pretty high-priced product to be making the kind of wage that some people might make literally baby-sitting or working in a supermarket.

So, it's a — it would be a substantial change to their lifestyle and their way of living.

Laura Barrón-López:

The union is also calling for a four-day workweek. But when speaking to reporters, Ford's CEO threw cold water on that.

Jim Farley, CEO, Ford Motor Company:

We will see. I mean, a four-day workweek is not attainable. We're literally fighting for the future of automotive manufacturing in our country.

Laura Barrón-López:

Neal, what's the biggest worry for these companies right now? Is it the E.V. transition? Is it raises?

Neal Boudette:

I think they're concerned about the E.V. transition, but they want to avoid getting locked into something that they can't change down the road.

That happened in the past, and that was part of the reason why the Big Three became so uncompetitive. They have regained their competitive edge, but they don't want to do something like a four-day workweek that they're locked into and, say, five years from now or 10 years from now, conditions change, and that makes them uncompetitive.

A wage increase, they can accept, but permanent changes to the way work is done, that would be a real tough thing for them to swallow.

Laura Barrón-López:

And what would the impact be on everyday Americans if this strike takes place? Would the price of cars go up?

Neal Boudette:

I don't think you would see much of an impact in a short strike, a week or two weeks. Dealers do have inventory, so people could still go out and buy cars.

But if it lasts longer than that, if it goes on four weeks, five weeks more than that, dealers will start running out of cars, and, of course, the law of supply and demand, you could see prices go up, and it could be tougher to find the new cars that people want to buy.

Laura Barrón-López:

Could you explain a little bit more why it's so critical to the union to be able to organize at these E.V. plants?

Neal Boudette:

Because, right now, one E.V. plant — or one E.V. battery plant has been organized, but there are others that are being built.

And they're concerned that if those jobs remain non-union, they will be paid $15 to $20 an hour, a wage that's roughly half of what the top UAW wage is. So they're concerned with those workers and also the working conditions. Those battery plants can be dangerous places to work. So there's a lot of concerns they have for those people who will be in those battery production plants.

Laura Barrón-López:

Taking a step back, Neal, to what extent are these UAW talks important to the larger labor work force in the U.S.?

Neal Boudette:

I think they're the highlight.

I mean, we have had a lot of — going on this summer. The Hollywood writers are out. The Hollywood actors are out. There was almost a strike at UPS. That was avoided. But this is the biggest one of all. It's 150,000 UAW workers at the three companies, and they're at plants all across the Upper Midwest.

If there is a strike against the three of them, there would be economic pain in a lot of those factory towns, dozens of factory towns in Michigan, Ohio, Indiana and other states in the Midwest.

Laura Barrón-López:

Neal Boudette of The New York Times, thank you so much for your time.

Neal Boudette:

Glad to be here.