Thousands of members of the United Automobile Workers union went on strike Friday at three plants in three Midwestern states, in what was the first strike to simultaneously affect all three Detroit automakers.
The union and the companies — General Motors, Ford Motor and Stellantis, the parent of Chrysler — remained deadlocked in negotiations for a new collective bargaining agreement when the current contract expired at 11:59 p.m. Thursday.
As the deadline approached, workers began breaking into the targeted factories – in Michigan, Missouri and Ohio – to protest.
At first, the strike will idle one plant owned by each automaker and could force automakers to halt production at other locations, shaking local economies in factory towns across the Midwest.
“We're using a new strategy,” union president Shawn Fain said in a video broadcast on Facebook Thursday night. “We are calling on local elites to stand up and strike.”
In the 88 years since its founding, the union has called strikes targeting just one automaker, and a handful have halted production for several weeks. GM plants idled for 40 days in 2019 before the company and union agreed to a new contract.
The plants designated for strikes Friday represent only a small portion of all unionized plants at GM, Ford and Stellantis and those companies' 150,000 UAW members.
This limited strike, however, could hamper automakers because the sites produce some of their most profitable trucks, such as the Ford Bronco sport utility vehicle and the Chevrolet Colorado pickup. And Mr Fein has made it clear that the walkout could be widened if contract deals remain elusive.
“This is definitely a different approach, and Fain talks tough and has tough proposals,” said Dennis Devaney, a former member of the National Labor Relations Board who is a Detroit labor attorney.
Affected plants include a GM plant in Wentzville, Mo., which makes the GMC Canyon as well as the Colorado, and a Stellantis complex in Toledo, Ohio, which makes the Jeep Gladiator and Wrangler. At Ford's Michigan Assembly plant in Wayne, which makes the Bronco along with the Ranger pickup, only workers from the assembly area and paint shop will be out, Mr. Fain said.
The GM plant employs 3,600 hourly workers, according to the union, and the Stellantis plant employs 5,800. The union said about 3,300 workers at Ford's Michigan assembly plant would be affected.
The union demanded a 40 percent pay rise over the next four years, pointing out that compensation packages for executives at the three companies have risen about that much, on average, over the past four years.
Mr. Fain, who took office as union president this year, also called for cost-of-living adjustments that would push wages higher due to inflation, shorter work weeks, improvements to retiree pensions and health care and job security measures such as ability to strike at factories set for closure. In addition, he wants changes to a wage scale that starts new hires at about $17 an hour and requires eight years to climb to the top UAW wage of $32 an hour.
So far, the manufacturers have met Mr. Fain about halfway on wages, but have opposed almost all other demands.
On Thursday, GM said its latest offer included a 20 percent pay increase over the new contract, including a 10 percent raise in the first year and cost-of-living adjustments, but only for more senior workers. GM also said it would allow new hires to reach the top salary after four years on the job.
“We have made an exciting and unprecedented offer,” GM Chief Executive Mary T. Barra said in a video posted on the company's website Thursday night. “It addresses what you told us mattered most: wage growth, job security and long-term stability.”
He also suggested that granting most or all of the union's demands could hurt the company's prospects as it has invested tens of billions of dollars in its transition to electric vehicles.
“We are at a crossroads in our journey to transform the company,” he said. “Make no mistake: If we don't continue to invest, we will lose ground, and it will happen quickly. Nobody wins in a strike.”
Ford and Stellantis also made new proposals to the union in the 48 hours before the deadline, but did not provide details.
The Biden administration said Thursday that President Biden had spoken with Mr. Fein and with auto industry leaders about the status of negotiations. A senior White House official said Mr. Biden was not pressing the companies or the union for the figures, but that he was encouraging all parties to stay at the table and ensure workers get a fair contract.
The union's demands for significantly higher wages and new benefits are a sharp departure from the past 20 years, when the auto industry was ailing and the UAW was forced to accept major concessions to help companies survive.
But more recently, GM, Ford and Stellantis are reporting near-record profits. In the first half of this year, Ford made $3.7 billion and GM made $5 billion. Stellandis reported profits of 11 billion euros (about $11.9 billion).
Mr. Fain, who started out as an electrician at Chrysler and worked in union management before being elected president, campaigned on a promise to take a more aggressive and confrontational approach to this year's contract negotiations.
In speeches to union members, he has often highlighted the pay of car company executives. Last year, Ms. Barra took home $29 million. Ford's Jim Farley made $21 million, while Stellantis chief Carlos Tavares was given a package worth about $25 million.
A widespread strike would reduce the availability of new vehicles and raise prices. A long outage would also ripple through the automakers' supply chain and could hurt other businesses as workers live on $500 a week in union strike pay.
The automotive industry is still dealing with the lingering effects of the pandemic. Production halted after the coronavirus hit, sharply reducing the supply of vehicles and domestic car stocks make up about a quarter of the stock at the end of 2019.
Michael D. Shear contributed to the report.
