'UAW Unseals the 1987 "Yeonjwapaeop" Strike'

The 1936 GM Union Sit-Down Strike as the Original

The first-ever simultaneous strike by the U.S. auto union is showing a different pattern even in its 'strike method.' There are also forecasts that this strike, targeting the just-in-time production system of the U.S. automakers, could trigger a second semiconductor crisis.

Leading this strike, Sean Payne, president of the United Auto Workers (UAW), said just before the strike began on the 13th (local time), "We are preparing a strike method that the management (General Motors (GM), Ford, Stellantis, etc.) has never seen before," adding, "Our strategy is to create chaos through a series of work stoppages targeting individual plants if negotiations break down." While he was reserved about the specific plans, he said, "We will strike where we think it is necessary."

As he predicted, two days later, the unions of the three companies began striking at only three individual plants out of more than 70 plants nationwide. This is a 'rolling strike' or 'stand up strike' method that expands the strike scope by targeting only key plants. The UAW plans to add more plants to the strike starting at 10 a.m. on the 22nd if there is no significant progress in negotiations.

This method has its roots in the 1987 GM union's 'sit-down strike.' The strike, which began in December 1936 at the GM plant in Flint, Michigan, expanded sequentially from one plant to another, and the management, which repeatedly shut down and reduced production, eventually surrendered after 44 days. This strike remains a monumental event in the history of the American labor movement, and GM, the starting point of this strike, was pushed to the brink of bankruptcy 72 years later.

[Image source=EPA Yonhap News]

Experts pointed out that this strike method could be a direct blow to the 'just-in-time' production system of U.S. automakers. This is because supply instability is the biggest threat to U.S. automakers, who receive parts almost simultaneously with orders to minimize inventory.

One foreign media outlet warned, "Production disruptions similar to those during the semiconductor crisis that plagued the industry for years after the pandemic could be repeated." Eric Gordon, a professor at the University of Michigan's Ross School of Business, said, "Management cannot predict where problems will occur in the supply chain, either upstream or downstream, which could cause great confusion. This is exactly what the UAW aims for."

Meanwhile, the UAW and the three companies remain at an impasse, failing to find a breakthrough in negotiations to end the strike. Regarding wage increases, management proposed a 17.5?20% raise, failing to narrow the gap with the union's demand of 36%. Other obstacles in the negotiations include strengthening pension and medical benefits for union members, expanding paid leave days including a four-day workweek, limiting temporary employee hiring, and job preservation during the transition to electric vehicles. Auto analysis firm S&P Global Mobility estimated the daily vehicle production loss due to the UAW strike at about 3,200 units.

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