Explainer-UAW strikes target Detroit Three automakers
(Reuters) -The United Auto Workers (UAW) union on Friday launched strikes at three U.S. auto plants after failing to reach an agreement over new contracts, the first-ever simultaneous labor action against the Detroit Three automakers.
The UAW contracts at General Motors (NYSE:GM), Ford Motor (NYSE:F) and Chrysler parent Stellantis (NYSE:STLA) expired at 11:59 p.m. EDT on Thursday.
Detroit automakers, like their global counterparts, have been focused on cost reductions, which in some cases include job cuts, to help accelerate a shift to electric vehicles (EVs) from gasoline-powered vehicles.
WHO IS THE UNION NEGOTIATING WITH?
The UAW, which represents 46,000 GM workers, 57,000 Ford employees and 43,000 Stellantis workers, kicked off negotiations with the companies in July.
The union historically has picked one of the Detroit Three to negotiate with first as the so-called target that sets the pattern on which subsequent deals are based. This time, UAW President Shawn Fain targeted all three companies simultaneously.
Contract talks between the UAW and the Detroit automakers in past years had gone on until the strike deadline and beyond.
WHAT ARE THE CURRENT OFFERS FROM THE DETROIT THREE?
Stellantis said on Saturday it has hiked its wage offer, proposing raises of 20% over a four-and-a-half-year contract term, including an immediate 10% hike. That matches proposals from GM and Ford.
The automakers say the proposals work out to a cumulative 21% hike over the period.
WHAT DOES THE UAW HAVE TO SAY ABOUT THE OFFERS?
The union previously has rejected the companies' offers. It has demanded a 40% wage hike, including a 20% immediate increase, and improvements in benefits.
«We'll organize one day longer than they can and go the
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