A month into strikes at auto plants at Ford, General Motors and Stellantis, United Auto Workers union president said during a Facebook Live Oct. 13 that he’s not waiting a week between decisions to expand strikes at plants across the country.
Strikes began Sept. 15, and have been steadily increasing, with new locations usually announced on Fridays based on how negotiations progressed that week.
On Oct. 11, UAW president Shawn Fain switched up the strategy. He announced a strike at Ford’s largest plant in Kentucky, where 8,700 workers walked out. Fain said he’s changing the “stand up strike” after he noted companies were waiting until Friday to make significant progress on negotiations.
Now, he said, there’s only one rule: “Pony up.”
“We will take out whatever plants they force us to,” Fain said.
Fain didn’t report any progress with the “big three” automakers this week. Last week, he announced “significant progress” with General Motors after the company agreed to place electric battery manufacturing under the union’s national master agreement. The union hopes to gain a 36% wage increase over four years; cost of living adjustments; and an end to the “tier” wage system, among other things.
General Motors and Stellantis have stood firm in their offer of a 20% wage increase since the initiation of the strike Sept. 15. A Ford executive said the company is “at its limit” with increases. Fain, however, said the companies’ record profits and union members’ higher expectations due to inflation are reasons to push for further increases.
GM released a statement Oct. 6 saying the company will continue negotiating to get past sticking points.
“Our goal remains to reach an agreement that rewards our employees and allows GM to be successful into the future,” the statement said.
What’s the economic impact of the strike so far?
The auto workers strike has caused $5.5 billion in economic losses when it hit its third week — surpassing the economic impact of the 2019 strike, which lasted 40 days, according to analysis from Anderson Economic Group.
The impact on the economy includes:
- $579 million in lost wages of auto workers on strike or temporarily laid off
- $2.68 billion in auto manufacturer losses
- $1.6 billion in auto supplier losses
- $1.26 billion in dealer and customer losses
The most pronounced effect so far has been on suppliers, the group notes.
“The stress suppliers are under has become acute, with more than 30% reporting that layoffs have already begun,” Patrick Anderson, Anderson Economic’s principal and CEO, said in a statement.
General Motors said it temporarily laid off about 2,330 employees across six locations in Kansas, New York, Ohio, Indiana and Michigan.
Striking workers, including about 120 at a GM’s parts distribution plant in Roanoke, just outside Fort Worth, are getting $500 a week from the union’s strike fund. Plants that are not striking, like the GM assembly plant in Arlington, are working under an expired contract until called to walk off the job.
Strikers remain hopeful for negotiation progress
Outside the Roanoke parts distribution plant, a small group of workers sit on chairs holding picket signs. The workers have been striking in front of their workplace in shifts every day since Sept. 22.
Destiny Bell, who works with her father and brother at the GM parts distribution plant, said the past three weeks of striking have gone well, but she hopes the strike ends soon. She wants to see cost-of-living adjustments and increased hourly wages. Bell, who lives in Burleson, said she is paid $20 an hour, and meeting everyday expenses has become difficult.
“I can hardly afford my rent,” she said.
Since going on strike, Bell said, it’s difficult to pay bills on time. But she said her credit union is working with her on her car payments.
Danny Kim, who was on strike in 2019, said he saved money in anticipation of the event. Kim worked jobs at a movie theater and a gas station to get by during the 2019 strike. This time is better, he said, because the amount he gets weekly has increased, and he’s seeing progress in negotiations.
“I’m more optimistic,” Kim said. “Ask me two weeks from now if we’re still doing this, I’ll probably be like ‘Come on, let’s get a deal going.’”
Seth Bodine is a business and economic development reporter for the Fort Worth Report. Contact him at seth.bodine@fortworthreport.org and follow on Twitter @sbodine120.
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