It's Official: UAW Goes on Strike After New Contract Talks Fail

They had months to agree on a new contract. It didn’t happen. United Auto Workers are officially on strike against Ford, General Motors, and Stellantis, formerly Chrysler, in an unprecedented labor strike that could cost billions in lost economic activity.

The Big Three wanted to use its record profits to roll out new electric vehicles, something the Biden administration is keen on, adding that these new concepts carried heavy production costs. The autoworkers union wanted a significant pay raise. It was a 40 percent bump over four years. They walked it back to the mid-30s. And now it seems like it jumped to nearly 50 percent.

Oh, is that all? pic.twitter.com/vf3xSvgpqM
— Guy Benson (@guypbenson) September 15, 2023

The automakers did pitch a counteroffer that UAW President UAW President Shawn Fain described as insulting. As the clock struck midnight Friday morning, 146,000 workers had no new contact, with thousands of workers at the Big Three’s factories walking off the job, the first since 2019 (via CNBC):

Here is the full statement from the UAW President tonight about the strike against Ford, GM and Stellantis: pic.twitter.com/JtS5gc8G2W
— Sawyer Merritt (@SawyerMerritt) September 15, 2023

Thousands of members of the United Auto Workers went on strike at three U.S. assembly plants of General Motors, Ford Motor and Stellantis, after the union and the automakers failed to reach a deal on a new labor contract Thursday night.
“The UAW Stand Up Strike begins at all three of the Big Three,” the union said in a post on X, the site formerly known as Twitter, just after midnight Friday.
The facilities are GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio. For Ford, UAW President Shawn Fain said only workers in paint and final assembly will be on strike.
The selected plants produce highly profitable vehicles for the automakers that largely continue to be in high-demand. About 12,700 workers – 5,800 at Stellantis, 3,600 at GM and 3,300 at Ford – will be on strike at the plants in total, the union said. The UAW represents about 146,000 workers across Ford, GM and Stellantis.
The plants were selected by the union as part of targeted strike plans initially announced Wednesday night by Fain, who has unconventionally been negotiating with all three automakers at once and has been reluctant to compromise much on the union’s demands.
[…]
“For the first time in our history, we will strike all three of the ‘Big Three’ at once,” Fain said just after 10 p.m. Thursday in live remarks streamed on Facebook and YouTube. “We are using a new strategy, the ‘stand-up’ strike. We will call on select facilities, locals or units to stand up and go on strike.”

Notably, the UAW opted to negotiate with all three auto manufacturers. The union was also hoping to reclaim some of its concessions from the 2008 financial crisis, which included benefits packages and job security provisions. The last strike in 2019 saw 46,000 workers go on strike, which lasted 40 days and cost General Motors $3.6 billion. The automakers are laser-focused on EV development, though this strike now risks botching the rollouts of their new models.

War has been declared, but for how long?