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UAW escalates strike against lone holdout GM

October 29, 2023
in Business
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The United Auto Workers union has expanded its strike against General Motors (GM), the only automaker in Detroit that has not reached a contract agreement, after reaching a tentative deal with Jeep maker Stellantis.

The escalated walkout began at a GM plant in Spring Hill, Tennessee, on Saturday evening, just hours after the agreement with Stellantis was reached. This adds nearly 4,000 workers to the approximately 14,000 already on strike at GM factories in Texas, Michigan, and Missouri.

The reason for this new action by the UAW, after 44 days of targeted strikes, has not been immediately explained. However, the impact on GM is significant as Spring Hill produces engines for vehicles assembled in a total of nine plants, including those in Mexico. One of the plants already on strike, which is supplied with engines from Spring Hill, is in Arlington, Texas, and produces full-size SUVs. Vehicles assembled at Spring Hill include the electric Cadillac Lyriq, GMC Acadia, and Cadillac crossover SUVs.

“The Spring Hill walkout affects so much of GM’s production that the company is likely to settle quickly or close down most production,” said Erik Gordon, a business professor at the University of Michigan. The union wants to conclude negotiations with all three automakers so that “Ford and Stellantis workers don’t vote down their tentative agreements because they want to see what GM workers get.”

The deal with Stellantis is similar to the one reached with Ford, and it saves jobs at a factory in Belvidere, Illinois, which Stellantis had planned to close, according to the UAW.

GM expressed disappointment with the additional strike at the Spring Hill plant, which is its largest in North America. The company stated that it has been bargaining in good faith and wants to reach a deal as soon as possible.

In response, UAW President Shawn Fain criticized GM’s refusal to reach a fair agreement, calling it unnecessary and irresponsible.

Spring Hill assembly line worker Larry Montgomery shared that workers were surprised by the strike call but are fired up and excited. UAW Local 1853 President John Rutherford in Spring Hill did not immediately return a message.

The agreement with Stellantis will require a vote by the 43,000 UAW members, just like the Ford deal. Previously, around 14,000 UAW workers were on strike at two Stellantis assembly plants and several parts distribution centers.

The Stellantis deal includes a 25% wage increase for top assembly plant workers over the next 4.5 years, with 11% coming once the agreement is ratified. Workers will also receive cost-of-living pay, resulting in a compounded raise of 33%. The base wage for top assembly plant workers will exceed all increases in the past 22 years. Starting wages for new hires will rise by 67%, and temporary workers will see raises of over 165%. The Stellantis contract will also allow the union to strike over plant closures and if the company fails to meet product and investment commitments.

The negotiations between the UAW and Stellantis intensified after the Ford deal was announced. The UAW began targeted strikes against all three automakers on September 15 after the contracts expired. At its peak, approximately 46,000 workers were on strike against the Detroit three.

Overall, the UAW and other unions have secured pay increases and other benefits for their members through aggressive bargaining strategies in recent months.

____

Bajak reported from Boston. AP writers John Raby in Charleston, West Virginia, Corey Williams in Sterling Heights, Michigan, and Haleluya Hadero in Jersey City, New Jersey, contributed to this report.



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Tags: escalatesholdoutlonestrikeUAW
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