[News Terms] 'Jeonmi Jadongcha Nojo (UAW)' Warns of Simultaneous Strike by US Big Three Automakers

The United Automobile Workers (UAW), established in 1935 in Detroit, is one of the largest automobile unions in the United States. It has 400,000 active members, including 150,000 workers from the Big Three automakers: GM, Ford, and Stellantis.

As a leading labor organization in the U.S., the UAW was the first to secure paid leave for workers in 1940, and has won significant benefits from employers such as wage increases aligned with the cost of living, unemployment benefits, pensions, and healthcare support. Based on these achievements, the union grew to 1.5 million members by 1979, but the number has since declined to 400,000 due to the downturn in the U.S. auto industry during the 1980s.

On the 4th, Sean Payne (left in the photo), president of the United Auto Workers (UAW), was talking with union members before marching in the Detroit Labor Day parade held in Detroit, Michigan.
[Photo by Getty Images] [Image source=Getty Images Yonhap News]

The UAW typically negotiates wages and collective bargaining agreements every four years with the Big Three automakers: GM, Ford, and Stellantis. The outcomes of these negotiations apply to all automobile and parts factories across the U.S. However, battery plants are excluded as they are jointly operated with Korean partners.

On the 11th (local time), major foreign media reported that if GM, Ford, and Stellantis go on strike, the economic loss could amount to approximately $5 billion (about 6.67 trillion KRW) over ten days.

The Big Three and the UAW have been engaged in collective bargaining since July, the first in four years, but have yet to reach an agreement. The UAW has demanded a 46% wage increase over four years, the introduction of a 32-hour workweek, and expanded welfare benefits. GM and Stellantis have not made any proposals, while Ford has only offered a 9% wage increase and a one-time payment, increasing the likelihood of a strike.

UAW President Shawn Fain has warned that if negotiations are not concluded by the deadline of the 14th, the union will immediately initiate a strike.

If the UAW does go on strike, the repercussions are expected to be significant. Since its founding in 1935, the UAW has never simultaneously struck against all three companies. Anderson Economic Group, a consulting firm in Michigan, stated, "Both strike participants and manufacturers will suffer losses amounting to hundreds of millions of dollars," and expressed concern that "President Biden, known for his pro-union stance, might be forced to take sides, which could lead to further complications."

This content was produced with the assistance of AI translation services.