United Auto Workers President Shawn Fain is scheduled to give an update Friday on the union’s labor contract negotiations with Detroit’s Big Three automakers, with some signs the sides are narrowing their differences as the strike inflicts an increasingly heavy financial toll.
Fain could yet call for additional targeted strikes at Ford, General Motors and Stellantis facilities, where about 25,000 workers at five vehicle assembly plants and 38 parts warehouses have walked off the job since the work stoppage began on September 15. But UAW and automaker representatives made meaningful progress during talks Wednesday, the Associated Press reported, raising hopes of a possible thaw in the contentious negotiations. A source with the UAW also told CBS News that the sides are engaged in “active talks.”
What automakers are offering
The UAW’s demands include a 36% pay increase over four years, annual cost-of-living adjustments, pension benefits for all employees, greater job security, a faster path to full-time jobs for temporary workers and a four-day work week.
Along with a wage hike, the union also wants the automakers to eliminate a two-tiered wage system the companies adopted in 2007 as the companies were struggling financially.
Ford said in a statement that it sweetened its proposal to the union this week, offering a general wage increase of more than 20% over four years. The company also said it offered to increase retirement plan contributions and include temporary workers in profit-sharing.
GM made its latest offer to the UAW on Sept. 21, the details of which neither side has made public. The automaker’s previous offer included a 20% wage increase “over the life of the agreement” and cost-of-living adjustments.
GM on Wednesday announced it has lined up a line of credit of up to $6 billion in light of the possibility of a longer strike. The company said it is “being prudent in the face of uncertainty.” GM also said it estimates the strike will cost the company about $200 million in lost production in the third quarter.
The most recent offer from Stellantis (the parent company of Chrysler, Dodge, Jeep and Ram) also includes a 20% wage increase through 2027 for full-time employees, and a 6% company match for retirement contributions.
Layoffs piling up
The UAW launched a coordinated strike last month when nearly 13,000 autoworkers walked off the job in Michigan, Missouri and Ohio. Since then, the automakers have furloughed or laid off thousands of non-union workers at plants in five states.
Ford this week expanded its layoffs to 350 workers at a transmission plant in Livonia, Michigan, and 50 workers at an axle plant in Sterling Heights, Michigan. Those workers were officially laid off Thursday, bringing Ford’s total layoffs to 1,330, the company said in a statement.
“These are not lockouts,” Ford said. “These layoffs are a consequence of the strike at Chicago Assembly Plant, because these two facilities must reduce production of parts that would normally be shipped to Chicago Assembly Plant.”
GM has laid off more than 2,100 workers across four states, while Stellantis has idled nearly 370 workers, Reuters reported.
So far, the strike has cost the auto industry about $3.9 billion, according to an estimate from Michigan-based consulting firm Anderson Economic Group. That includes $325 million in worker wages, $1.12 billion in losses for the automakers, $1.29 billion in losses for parts suppliers, and $1.2 billion in dealer and customer losses.
The UAW so far has avoided strikes at factories that manufacture large pickup truck and SUVs, which account for much of the automakers’ profits.
—The Associated Press contributed to this report.
