The auto industry may see its largest strike in years if the United Auto Workers (UAW) \u2013 the largest auto professional union in the country \u2013 does not reach an agreement with the \u201cDetroit Three\u201d automakers Ford, General Motors, and Stellantis by September 14. Union members are set to vote on whether or not to authorize a strike, with leaders asking local offices to report votes by August 24. <\/p>\n\n\n\n
If authorized, a strike could have a significant direct financial impact on the automotive industry. Even a brief labor stoppage could also create a broad range of ripple-effect consequences for manufacturers, autoworkers, and car buyers.<\/p>\n\n\n\n
The current agreement that covers nearly 150,000 UAW members employed by the Detroit Three is set to expire on September 14. In a press release<\/a>, the UAW suggested that the current agreement is imbalanced in favor of automakers and at the expense of autoworkers.<\/p>\n\n\n\n \u201cIn 2007-09, the Great Recession turned the auto industry upside down,\u201d said the release. \u201cTo save it, autoworkers took massive cuts to their wages and benefits. The companies introduced \u2018tiers,\u2019 worse pay for the same work. Pensions were eliminated. Post-retirement healthcare vanished for new hires. Jobs were cut. The companies got billions in taxpayer dollars, while autoworkers took deep cuts and made life-changing sacrifices to keep the industry alive.\u201d<\/p>\n\n\n\n Talks between the two sides have become increasingly tense as the September deadline draws near. Reuters and other outlets reported that UAW president Shawn Fain threw a contract proposal<\/a> from Stellantis into a trash can in response to the company\u2019s proposed concessions for autoworkers. In a Facebook Live session, Fain denounced proposed cuts to healthcare for workers, vacation time, and employer 401(k) contributions, and criticized suggestions to lift limits on the number of temporary employees that can be employed by the company.<\/p>\n\n\n\n \u201cStellantis proposals are a slap in the face,” Fain said during the session. \u201cManagement has chosen to spit in our faces.”<\/p>\n\n\n\n Stellantis Chief Operating Officer Mark Stewart offered a different perspective. In a letter to employees, he said that the company was \u201ccommitted to working with the UAW to reach an agreement based on economic realism.\u201d<\/p>\n\n\n\n \u201cThe theatrics and personal insults will not help us reach an agreement,\u201d wrote Stewart. \u201cNow is the time to come to the table with open minds and a commonsense approach. At this very early stage, no one should jump to any conclusions about the outcome of the process.\u201d<\/p>\n\n\n\n In its press release, the UAW points to several figures to illustrate reasons for new contract demands. These figures compare growth in auto industry profits and CEO pay to pay increases for workers. <\/p>\n\n\n\n \u201cThe Big Three automakers have made a quarter of a trillion dollars in North American profits in the past decade,\u201d said the press release. \u201cCEO pay is up 40% in four years; autoworker wages are up 6% in that time. Inflation is up 18%.\u201d<\/p>\n\n\n\n Automoblog did not have access to specific data for the \u201cBig Three\u201d automakers, but according to data from the U.S. Bureau of Economic Analysis (BEA)<\/a>, domestic manufacturers as a whole saw their highest profits in at least 22 years in Q4, 2022. In fact, the 29 most profitable quarters since 2001 have all come since 2010. Since Q1 2010, domestic auto manufacturers have combined to make $706.9 billion in profit. <\/p>\n\n\nAutoworker Pay Hasn’t Kept Up With Profits, Inflation<\/h2>\n\n\n\n