United Auto Workers (UAW) Launches Industry-Wide Strike: What You Need to Know
Late Thursday night, negotiations in the automotive industry broke down, resulting in a significant labor movement. The United Auto Workers (UAW), the union representing hundreds of thousands of auto industry workers, initiated a strike after the deadline to reach a new agreement passed at 11:59 p.m. Thursday. This “Stand Up Strike,” as union leaders have termed it, has the potential to become one of the largest in the industry’s history, targeting not just one but all of the “Detroit Three,” the largest automotive manufacturers in the United States.
With workers from at least three states participating in the strike, its impact is expected to be widespread. Here is what is known so far about the 2023 UAW strike.
What is UAW? The International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, commonly known as the United Auto Workers (UAW), is a union with 400,000 active members and over 580,000 retired members in the United States, Canada, and Puerto Rico. Representing workers across various sectors, including multinational corporations, small manufacturers, government entities, educational institutions, healthcare, and non-profit organizations, the UAW boasts 600 local unions, as per their official website. Established in 1935, the UAW has a history of engaging in strikes and labor disputes, securing significant concessions for its members, such as the first employer-paid health insurance plan for industrial workers and the first cost-of-living allowances.
The most recent UAW action occurred in 2019 when 46,000 General Motors (GM) workers went on strike for 40 days, resulting in a $3 billion cost to GM.
Who is UAW Striking Against? UAW is striking against the “Detroit Three” automotive companies, which include General Motors, Ford, and Stellantis, the parent company of brands like Jeep, Ram, Chrysler, Dodge, and Fiat.
Approximately 13,000 UAW members are participating in the strike.
Why is UAW Striking? The UAW declared the strike, referred to as the “Stand Up Strike,” at 11:59 p.m. on Thursday after contract negotiations failed to secure new labor agreements before the expiration of the existing contracts.
UAW leader Shawn Fain outlined the union’s demands, including:
- Eliminating wage tiers.
- A 40% wage increase over the contract’s duration, reflecting the same percentage as the increase in CEO salaries.
- Restoring cost-of-living allowance adjustments to counteract inflation.
- Introducing a defined benefit pension plan for all workers.
- The right to strike regarding plant closures.
- A reduced workweek and increased paid time off.
- Limiting the use of temporary workers.
- Enhancing benefits for current retirees.
Where are the Strikes Taking Place? UAW members at three assembly plants in Michigan, Ohio, and Missouri initiated the strike. Specific locations targeted include the Ford Michigan Assembly Plant (Final Assembly and Paint only) in Wayne, Stellantis’ Toledo Assembly Complex in Ohio, and General Motors’ Wentzville Assembly in Missouri.
What Does This Mean for Auto Employees and Strikers? Financial challenges are a significant consideration during any strike. While workers are entitled to strike pay, there is an eight-day waiting period before it becomes effective. Strike pay, funded by the union’s strike fund, estimated at $825 million, amounts to $500 per week. It is prorated, meaning each day of lost wages on strike counts toward an eligible member receiving a prorated daily strike assistance amount, according to UAW guidelines.