September 15, 2023 United Auto Workers go on strike

United Auto Workers union President Shawn Fain dismissed Ford CEO Jim Farley's claim that Ford would go bankrupt if it met all of the union's contract, saying, "It's a joke."

Ford CEO Jim Farley told CNN earlier in the day that the company couldn't afford all of the union's demands, including a 40% pay raise and a 32-hour, four-day work week. Company officials had told reporters earlier in the day that the $30 billion in operating profits the company made from 2019 through 2022 would have swung to a $14.4 billion loss had it be operating under terms of the UAW's contract demands.

Ford had offered the UAW a 20% pay raise over the life of the contract, including an immediate 10% hike. But it wasn't enough to prevent a strike.

Fain said earlier Thursday evening that "we are committed to winning an agreement with the 'Big Three' that reflects the incredible sacrifice and contributions UAW members have made to these companies."

Michigan Rep. Rashida Tlaib, whose father worked for Ford and was a UAW member, told CNN’s Kaitlan Collins on “The Source” Thursday that she hopes a deal can be reached with the three big auto companies because people are anxious about it. 

“They know what’s at stake,” the Democrat said. “So many of our UAW neighbors throughout my district constantly tell me how they’re struggling. That they’re living check by check. They should be able to take care of their families, like my father did.”

“They’re willing to use one of the most powerful tools we have in our country to fight against corporate greed. Which is the right to strike.”

United Auto Workers members walked off the job and joined picket lines at midnight Friday morning.

UAW social media accounts posted and reposted videos of workers walking out of plants to cheers from sign-waving union members. Picket lines were forming, a sign not only of the targeted strikes taking shape but also the possibility of wider strikes that the union has already hinted at.

GM responded shortly after midnight, when the UAW officially went on strike.

“The UAW has informed GM that they are on strike at Wentzville Assembly in Missouri as of 11:59 PM," the company said in a statement.

"We are disappointed by the UAW leadership's actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible for the benefit of our team members, customers, suppliers and communities across the U.S. In the meantime, our priority is the safety of our workforce," the statement concluded.

The UAW on Thursday sent information to its members about which local units would be on strike.

GM Wentzville Assembly

Approx. 3,600 members

Product: Chevrolet Colorado, Express; GMC Canyon, Savanna

Stellantis Toledo Assembly Complex

Approx. 5,800 members

Product: Jeep Wrangler, Gladiator

Ford Michigan Assembly Plant – Final Assembly and Paint

Approx. 3,300 members

Product: Ford Ranger, Bronco

NOTE: This is not the entire Michigan Assembly Plant facility, BSU/ISA (colloquially called "Stamping") is not on strike

It’s possible that the Big Three automakers will shut down operations and lay off members who are not technically on strike.  

Ford CEO Jim Farley said on CNN on Thursday that striking plants that make critical parts could affect workers at downstream assembly plants. 

"We can't make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed," Farley said. 

Strikers are not eligible for unemployment benefits, but workers who are on temporary layoff can receive the benefits, which differ depending on the state where they work but would be less than the union's $500 strike pay. There also are legal questions in different states about qualifying for unemployment. 

A union spokesman said earlier Thursday that he couldn’t comment on members’ eligibility for unemployment benefits if they were laid off due to plants shutting down from lack of parts caused by the strike. 

A strike against the automakers could have big economic effects.

According to Anderson Economic Group, a 10-day strike against General Motors, Ford and Stellantis would cost the US economy $5 billion.

Goldman Sachs estimated the strike would cut overall quarterly annualized growth by 0.05 to 0.1 percentage points for each week the strike lasts.

The suppliers up and down the supply chain, many of which are small businesses, will feel the brunt of the work stoppage, the National Association of Manufacturers President.

UAW went on strike against General Motors in September 2019, when the union’s nearly 50,000 hourly full-time and temporary workers walked out at 31 GM factories and 21 other facilities across nine states. The union and company negotiators reached a labor contract in October 2019 after a nearly six-week strike.

By the time that strike was in its fourth week, GM said it was looking at losses of up to $90 million a day.

Members of the United Auto Workers at General Motors, Ford and Stellantis are on strike. Here are some key numbers to know:

That's the top hourly wage for most of the UAW members at GM, Ford and Stellantis.

During contract negotiations, union members wanted an immediate 20% raise, and four more annual increases of 5% each. Wages would have increased 46% over the four-year life of the contract.

The average purchase price for a new car in August, according to data from Edmunds. That's a 30% increase from the average sales price in August 2019.