A union representing nearly 150,000 auto workers initiated a strike on Friday morning against three major American vehicle manufacturers – General Motors, Ford, and Stellantis.
United Auto Workers, or UAW, and the automaker union failed to reach an agreement on a contract settlement before the designated deadline of Thursday night at 11:59 ET. Just over two hours before the deadline, UAW President Sean Finn announced plants where there would be a strike if no tentative agreement was reached on time. By Friday midnight, approximately 12,700 union workers were on strike, including GM employees in Wentzville, Missouri; Stellantis in Toledo, Ohio; and Ford’s Van Dyke plant in Michigan.
This is a “stand-up” strike by the union, meaning not all union members go on strike simultaneously.
As soon as the strike began, a spokesperson for Stellantis released a statement expressing the company’s disappointment.
“We are extremely disappointed by UAW’s refusal to engage responsibly for the benefit of our employees, their families, and our customers. We have placed the company into an emergency mode immediately and will take all appropriate structural steps to secure our operations and the safety of our North American leadership and company.”
Prior to the strike on Thursday, major demands from UAW and the companies ranged from wage increases to the length of the workweek.
The union had demanded a joint 46% wage increase over the four-year term of a new contract, along with a 32-hour workweek at 40-hour pay.
General Motors and Ford had offered proposals on Thursday that provided for 20% wage increases during the course of the contract, while Stellantis’ latest offer included a total of 17.5% wage increase. All three companies included a 40-hour workweek in their proposals.
Amidst strike concerns, Ford Motor Company released a statement on Thursday evening saying that UAW’s latest proposal, received by them late on Thursday, “showed very little change from the initial demands that were presented on August 3.”
The company stated, “The union has made it clear that, unless we agree to its terms, it plans to strike at 11:59 PM Eastern. Ford remains fully committed to reaching an agreement that rewards our employees fairly during this period of change and supports Ford’s investment in our business and the economy.”
Automakers have said that they are “fully committed to reaching an agreement that properly rewards employees during times of transformation” and “protects the future investment in Ford.