© Reuters. FILE PHOTO: People hold signs along the road during a UAW rally to support striking workers outside an assembly plant in Louisville, Kentucky, U.S., September 21, 2023. REUTERS/Michael Swensen
By David Shepardson and Joseph White
DETROIT (Reuters) -The United Auto Workers expanded its strikes against Detroit automakers General Motors (NYSE:) and Chrysler parent Stellantis (NYSE:), but kept its Ford (NYSE:) walkout limited to a single plant due to progress made in talks, the union said on Friday.
The auto workers’ union began strikes at noon EDT (1600 GMT) on Friday against 38 parts distribution centers across the United States at GM and Stellantis, extending its unprecedented, simultaneous strikes that began with one assembly plant each of the Detroit Three. The additional facilities added about 5,600 workers to the 12,700 already on strike.
UAW President Shawn Fain, in a Facebook (NASDAQ:) live event viewed by more than 50,000 people with nearly 10,000 more watching on YouTube, said that by targeting distribution centers the strike becomes a nationwide event.
He addressed union members wearing a military-style camouflage shirt with signs behind him sporting messages like “Record Profits, Record Contracts.”
The announcement was carefully managed by the union, leaving the automakers guessing what facilities might be struck next. Many analysts had assumed the next targets would be plants building the companies’ most profitable vehicles.
Instead, Fain said the decision on the expanded strike would impact consumers trying to obtain repair parts. “We will be everywhere from California to Massachusetts, from Oregon to Florida.”
“Stellantis and GM in particular are going to need some serious pushing,” he said.
Fain said they have more work to do at Ford, but “we do want to recognize that Ford is showing they’re serious about reaching a deal.”
He also threatened more action at Stellantis’ critical parts plants in his hometown of Kokomo, Indiana. Stellantis has four factories in Kokomo that make engines and transmissions used widely across the automaker’s product line.
Stellantis has said it wants to be able to consolidate and close some of its parts distribution centers.
Fain invited President Joe Biden to come to the picket lines – along with other politicians, friends and family. The president has been vocal in his support for the union’s demands for better pay and benefits.
Former President Donald Trump, who is seeking a new term, will be in Michigan next week to address auto workers about the strike.
Fain said Ford had improved its contract offer, including boosting profit sharing and agreeing to let workers strike over plant closures but said the union still has “serious issues” with Ford.
Ford also agreed to convert temporary employees with at least 90 days’ employment to full-time upon ratification of a deal, he said.
GM did not immediately comment. Stellantis said the company is continuing to meet with the union.
Ford said it is continuing to negotiate, adding that “we have more work ahead of us before we can reach an agreement.”
Nearly 13,000 UAW workers walked out at plants in Missouri, Michigan and Ohio on Sept 15. Those plants produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, alongside other popular models.
Wedbush Analyst Daniel Ives said this latest move by the UAW marks a divergence in the talks with the automakers.
“The current deal is a torpedo to the business models of the Detroit 3,” he said. “To take a deal just to avoid a strike and get it done is great for the next 24 hours but a nightmare for the next 30 years. This is like union 101 in terms of divide and conquer.”
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Ford’s family-controlled structure gives it a different focus than the other two.
“GM and Stellantis are looking at stockholder value and Ford is looking a lot more long-term that they have to make friends with labor.”
PROLONGED ACTION
The standoff is fueling worries about prolonged industrial action that could disrupt production and dent U.S. economic growth. A Reuters/Ipsos poll released on Thursday showed significant support by Americans for the striking auto workers.
The strike has become a focus of attention for Biden and Republican candidates who want to replace him. The UAW’s invitation to Biden is a notable overture given the union has not yet endorsed him for the next presidential election.
The White House declined to comment on Friday.
Fain has said the Detroit automakers have not shared enough of their profits with workers while enriching executives and investors.
GM President Mark Reuss this week rejected those claims, saying the current offer to the union would be generous and the company’s profits have been reinvested in the transition to electric vehicles.
The automakers have proposed 20% raises over 4-1/2 years, while the UAW is seeking 40%.
The union also wants to eliminate wage gaps separating newer and older employees, as well as workers in certain component operations and those in assembly plants. Fain said on Friday that the union had negotiated the elimination of lower wage tiers in some components facilities at Ford and GM. But Stellantis has not agreed to raise wages at its MOPAR component operations, Fain said.
Ford reached a last-minute deal to avoid a walkout at its Canadian operations late on Tuesday. Unifor, which represents about 5,600 Canadian auto workers, had been threatening to go on strike at all three Ford plants in the country.
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