Why the United Auto Workers union is poised to strike major US car makers this week
About 146,000 U.S. auto workers are set to go on strike this week if General Motors, Ford and Stellantis fail to meet their demands for big pay raises and the restoration of concessions the workers made years ago when the companies were in financial tr...
DETROIT — About 146,000 U.S. auto workers are set to go on strike this week if General Motors, Ford and Stellantis fail to meet their demands for big pay raises and the restoration of concessions the workers made years ago when the companies were in financial trouble.
Shawn Fain, the combative president of the United Auto Workers union, has threatened to strike any of the three companies that hasn't reached an agreement by the time its contract with the union expires at 11:59 p.m. Eastern time Thursday.
Both sides began exchanging wage and benefit proposals last week. Though some incremental progress appears to have been made, a final agreement could come too late to avoid walkouts by UAW workers at factories in multiple states. Any strike would likely cause significant disruptions for auto production in the United States.
Here's a rundown of the issues that are standing in the way of new contract agreements and what consumers could face if a prolonged strike occurs:
The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47. In addition, the UAW has demanded an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and a return of cost-of-living pay raises, among other benefits.
Perhaps most important to the
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