US Auto Workers Union Goes on Strike... First Simultaneous Strike by Three Companies in 88 Years
The United Auto Workers (UAW), the largest labor union in the U.S. automotive industry, has launched simultaneous strikes against the three major American automakers: Ford, Stellantis, and General Motors (GM). This is the first time in the union's 88-year history that it has initiated a simultaneous strike against all three companies.
According to major foreign media on the 14th (local time), UAW President Shawn Fain announced on Facebook, "Tonight, for the first time since the union's founding, we are striking simultaneously against the three major automakers."
The strike targets designated by the UAW include Ford's Bronco assembly plant in Wayne, Michigan; Stellantis' Jeep assembly plant in Toledo, Ohio; and GM's pickup truck assembly plant in Wentzville, Missouri.
Bloomberg reported, "A total of 12,700 workers will participate in the strike," adding, "They will receive $500 per week in strike pay from the union."
The UAW stated that it plans to add more strike locations depending on the progress of negotiations. These plants produce the most profitable vehicles in the Detroit area. Bloomberg noted, "The UAW is employing this strategy to systematically reduce the production of highly profitable vehicles while minimizing the impact of the strike."
The strike began after both sides failed to reach an agreement before the collective bargaining agreement expired at 11:59 p.m. that day. The UAW demanded at least a 40% wage increase over the next four years and measures to address job losses for existing workers amid the expansion of electric vehicle production. This demand was based on the fact that despite companies posting earnings surprises due to improved sales performance, workers had not received appropriate compensation. However, the automakers maintained that the demands were "unrealistic."
As the strike began, the three companies immediately issued statements criticizing the UAW. Stellantis expressed in an email statement, "We are very disappointed that the UAW leadership has not approached the negotiations responsibly for the benefit of families, employees, and customers," adding, "We will make appropriate structural decisions to transition the company to emergency mode and protect our North American operations."
GM said, "We are disappointed by the UAW's decision despite unprecedented wage increase proposals and commitments made at the bargaining table for the manufacturing industry," and pledged to negotiate sincerely to reach an agreement as soon as possible.
Hot Picks Today
If They Fail Next Year, Bonus Drops to 97 Million Won... A Closer Look at Samsung Electronics DS Division’s 600M vs 460M vs 160M Performance Bonuses
- Opening a Bank Account in Korea Is Too Difficult..."Over 150,000 Won in Notarization Fees Just for a Child's Account and Debit Card" [Foreigner K-Finance Status]②
- [Breaking] Blue House: "Israel Deports Two Korean Nationals Without Detention"
- Room Prices Soar from 60,000 to 760,000 Won and Sudden Cancellations: "We Won't Even Buy Water in Busan" — BTS Fans Outraged
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
Ford also criticized the strike, stating, "(The UAW) has not backed down from its initial demands," and warned that the union's choice would further enhance the competitiveness of rivals Tesla and Toyota Motor Corporation.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.