UAW president Shawn Fain and members and workers at the Mopar Parts Center Line, a Stellantis Parts Distribution Center in Center Line, Michigan, picket outside the facility after walking off their jobs at noon on September 22, 2023.
Matthew Hatcher | AFP | Getty Images
DETROIT – A year after unprecedented strikes by the United Auto Workers against the Detroit automakers, the union is once again threatening work stoppages that could disrupt the U.S. automotive industry.
The UAW on Wednesday announced a strike deadline at a Ford Motor tool and die plant that supports the automaker’s Rouge Complex near Detroit – one of two U.S. plants that produces the company’s highly profitable F-150 pickup truck.
The 11:59 p.m. Sept. 25 strike deadline came a day after UAW President Shawn Fain announced plans to hold strike authorization votes at one or more local unions covering Stellantis plants in the U.S.
Both announcements amount to warning shots against Ford and Stellantis and center on union contracts and local issues at the facilities. The union has not announced similar actions against General Motors.
UAW members are covered by national agreements, which include issues such as wages, bonuses and other benefits, as well as local contracts that are tailored to each facility.
Local contracts have historically taken months, if not years, to settle after a national agreement is reached. Sometimes they are not settled at all during the terms of the national deal.
Last year’s auto worker strikes came during historic negotiations over national contracts with all three Detroit automakers at once. The union won record wage increases — 25% over the term of the deal — and reinstatement of cost-of-living-adjustments, but labor experts said it could be at the cost of jobs.
The most recent strike deadline for Ford was called over local plant negotiations involving “job security, wage parity for Skilled Trades, as well as work rules,” according to the union.
A strike at a supporting facility for an assembly plant could impact vehicle assembly if the automaker cannot make contingency plans for the parts. The plant employs fewer than 500 workers.
Ford, in a statement Thursday, said negotiations with the union are ongoing: “Ford invested $15 million in the plant last year and we have been at the table problem-solving. Negotiations continue and we look forward to reaching an agreement with UAW Local 600 at Dearborn Tool & Die.”
The strike deadline takes tensions there a step further than at Stellantis, where the union has announced authorization voting at Stellantis. Strike authorization votes are procedural. They are votes by workers to authorize UAW leaders to call a strike, if warranted. Such votes for the national contract negotiations typically pass with more than 90% of worker approval.
The announced voting at Stellantis comes after months of mudslinging by Fain against Stellantis and its CEO Carlos Tavares following product cuts, layoffs and other actions that the union has deemed detrimental to union workers, including the potential to move production of vehicles such as the Dodge Durango out of the U.S.
The union on Monday filed unfair labor practice claims with the National Labor Relations Board against Stellantis, claiming the automaker refused to “provide the Union with relevant information” regarding investments and products.
“The company wants you to be scared, but we are 100% within our rights and within our power to take strike action if necessary,” Fain said Tuesday night during an online broadcast.
Stellantis has contended such a strike would be illegal.
Stellantis CEO Carlos Tavares speaks to media on June 13, 2024 following the company’s investor day at its North American headquarters in Auburn Hills, Mich.
Michael Wayland / CNBC
Fain has been adamant that the union won the right to strike over the automakers’ product and investment commitments during national bargaining. However, there remains language in the contracts regarding market conditions, economics and other factors that could grant the company leniency.
The company Tuesday night after Fain’s strike authorization vote announcement criticized the union leader for his actions and comments.
“Shawn Fain continues to allege that the company has violated the contract, but to date has provided no data or information to back up his claims. Instead, he continues to willfully damage the reputation of the company with his public attacks which is helpful to no one including his members,” the company said in an emailed statement.
Stellantis said a strike “does not benefit anyone – our customers, our dealers, the community and, most importantly, our employees.”
In addition to Monday’s NLRB complaint against the company, Fain said 28 Stellantis locals have filed grievances against the automaker. Those complaints cover about 98% of Stellantis’ UAW-represented workforce, according to the union.
“Once we’ve authorized a strike at a local, we meet with the company seven times and either resolve the issue or take strike action as our union sees fit,” Fain said.
As of the beginning of this year, Stellantis employed roughly 43,000 workers represented by the union.
The union this week also began contract negotiations with Volkswagen. VW workers in Chattanooga, Tennessee, overwhelmingly voted in favor of UAW representation earlier this year.