UAW Plans Targeted Strikes at Detroit Automakers if Contract Agreements Not Reached
The United Auto Workers (UAW) union intends to carry out targeted strikes at specific plants belonging to Detroit automakers, including General Motors, Ford Motor, and Stellantis, if tentative contracts are not reached, according to union officials briefed on the matter.
The plan is subject to change depending on the progress of negotiations leading up to the Thursday deadline at 11:59 p.m. ET.
Targeted strikes refer to work stoppages limited to certain plants and involve local contract issues, as opposed to national strikes where all union members exit plants. The last round of negotiations against GM four years ago involved national strikes.
UAW President Shawn Fain is expected to outline the strike strategy during a Facebook Live event at 5 p.m. ET Wednesday.
Fain and other leaders have consistently stated that they have a plan in case agreements are not reached by the deadline. This plan includes the possibility of strikes at all three automakers, involving approximately 146,000 UAW members.
Implementing targeted strikes can be complicated, as the impact on other plants is uncertain. Non-striking union members may face unemployment if their state allows them to collect benefits while being out of work due to a strike.
Companies can respond by locking out workers or hiring permanent replacement employees for striking workers.
Targeted strikes will save the union money, as they won’t have to provide “strike pay” to as many members from their $825 million strike fund.
The fund currently pays eligible members $500 per week, which would be enough for approximately 11 weeks if everyone went on strike. However, this does not include healthcare costs that the union would cover, such as temporary COBRA plans, which could deplete the fund more quickly.
The UAW declined to comment on the strategy, which was initially reported by The Detroit Free Press as a “stand-up strike” in contrast to the “sit-down strike” of 1936 and ’37.
Ford CEO Jim Farley expressed optimism about reaching an agreement with the UAW within the next two days.
Farley mentioned that negotiators are working overnight at the company’s offices to finalize a deal with the union.
