United Auto Workers (UAW), one of the largest unions in the United States with almost 400,000 active members, recently went on strike against the so-called “Big Three:” the three large American auto manufacturers, Ford, General Motors, and Stellantis. With auto industry profits up almost 90 percent in the last decade, UAW has demanded a 40 percent pay increase for their workers, considering that, according to spokespeople for the union, CEOs have received raises in line with that number.
The auto industry remains one of the largest and most influential industries in the United States; the Big Three have a market capitalization of over a trillion dollars and the industry recovered excellently from the COVID-19 pandemic as well as the accompanying recession. Thanks to a renewed interest in car sales, especially due to the recent national return-to-office changes, auto companies have brought in large profits over the last few years.
In response, UAW has gone on strike since Sept. 15, trying to convince various auto manufacturers to increase their pay packages or negotiate. Since then, nearly one in 10 autoworkers have started picketing, sending shockwaves through the industry.
While many manufacturers and sellers still have a backlog to cover current consumers and purchasers, the prospect of an extended strike in this time has become a scary reality. Pittsburgh and PNC allege that for consumers, there won’t be much difference, but automotive plants will have to negotiate eventually. Productive talks have been occurring, but there have been some roadblocks.
General Motors recently returned to their workers with an offer of a 20 percent pay increase across four years, an offer similar to Stellantis’ 21 percent over a similar time frame. In response, UAW leaders pointed out that the CEO of GM had earned an almost 35 percent pay raise in this same time. Leaders said this pay raise, if connected to company success, should have rolled down into the pockets of UAW workers as well.
UAW has rejected both of these proposals, calling them “insulting,” and holding out for the full 40 percent.
These strikes are happening alongside immense pressure from the federal government towards the Big Three to go electric, with GM pledging 100 percent electric production by 2035. Shawn Fain, UAW president, has held off on endorsing Joe Biden, claiming he wants to see real, tangible action from the government before he’s willing to support them. With most of the costs of the transition being shouldered by the workers, many UAW members feel displeasure in the reality that they’re not just paying for the subsidies for electric vehicles via taxes, but also for the creation of electric vehicles from their decreasing benefits the last few years. With the strike still up in the air, talks will continue unless UAW is willing to take a smaller settlement or one of the Big Three folds and gives them the 40 percent.
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