About 13,000 U.S. auto workers went on strike Friday after their leaders were unable to bridge a huge gap between union demands in contract discussions and what Detroit's three automakers are ready to pay
The contracts for the United Auto Workers expired at 11:59 p.m. on Thursday. The contracts cover 145,000 UAW members at big three companies: General Motors, Ford, and Stellantis, which manufactures vehicles for North America under the Jeep, Ram, Dodge, and Chrysler brands.
With no new contract agreed by the contract's expiration, the union said that it has begun targeted strikes aimingthree sites, one at each business.
Here is what you need to know:
Which plants are part of the strike?
With fewer than two hours until the strike deadline, UAW President Shawn Fain declared that workers at three GM plants - one in Wentzville, Missouri, one in Toledo, and one in Wayne, Michigan - would go on strike. It might not take much to effectively shut down all of the companies' output.
The corporations run a sophisticated network of plants that rely on parts from various locations. According to industry experts, slowing or stopping production at a few engine or transmission factories at each business might be as effective as a full strike at all plants in suspending operations.
Will automakers continue to make concessions?
According to the most recent reports, Ford and GM are now giving a 20 percent raise throughout the life of the deal, while Stellantis is offering 17.5 percent. The union began with a demand for an immediate 20 percent raise, followed by four subsequent 5 percent raises over the length of a four-year contract.
And all of the manufacturers made statements saying they wanted to reach tentative labor agreements before the strike deadline. Regardless of the differences, an 11th-hour resolution or settlement is possible.
GM CEO Mary Barra told employees in a letter on Thursday that the company's current offer now includes a 20 percent rise, with an immediate 10% salary increase. The lower-paid temporary staff would be paid $20 per hour, a 20 percent increase from the current $16.67 per hour.
According to Ford CEO Jim Farley, the corporation's offer of a 20 percent raise over the life of the contract is the most lucrative offer the business has made to the union in its 80-year history. However, he claimed that meeting the union's demands for nearly a 40 percent raise, as well as a four-day work week and other benefit changes, would have been unaffordable. The union proposed the 40 percent hike based on the increase in CEO pay at the three manufacturers over the last four years. Ford CEO pay increased 21 percent last year, from $17 million for Farley's predecessor Jim Hackett in 2019 to $21 million for Farley.
Ford has not had a nationwide strike since 1976, and it has not had any form of strike at its US plants since 1978. The strikes are expected to shape the union's and America's domestic auto industry's future at a time when U.S. labor is exercising its muscles and corporations confront a historic transition from creating internal combustion autos to making electric vehicles.