An unprecedented strike began on Friday in the United States, among the three largest American automobile manufacturers. President Joe Biden pleaded for a “fair” sharing of their “record profits”.
“Companies have made significant proposals but I think they should go further” with employees, Joe Biden said on Friday during a short speech at the White House.
Negotiations between the powerful American automobile union, the United Auto Workers (UAW), and the three major manufacturers, which notably concern wage increases, have failed.
The UAW therefore carried out its threat and launched, on the night of Thursday to Friday, an unprecedented simultaneous strike among the “Big Three”, the “Big Three” American manufacturers: General Motors (GM), Ford and Stellantis (resulting from the merger of the French PSA and the American Chrysler).
“No one wants a strike”
“Today we are bringing our members together. Tomorrow we will be at the negotiating table,” Shawn Fain, president of the UAW, said in a statement Friday afternoon, saying all three groups had now received a ” complete counter-offer. Joe Biden, who is seeking a second term at the White House in 2024, regularly shows his support for unions in all sectors.
“No one wants a strike,” he said, nevertheless assuring that he understood “the frustration of workers,” who “deserve a fair share of the benefits they helped create.” In the first half of 2023, the three manufacturers generated a cumulative turnover of 276 billion dollars and a net profit of 20.25 billion.
Worry
The walkout began Friday at three assembly plants: the Ford plant in Wayne, in the Detroit (Michigan) area, the GM site in Wentzville (Missouri, center) and that of Toledo (Ohio, north) for Stellantis. Around 12,700 employees were expected to walk out on Friday, according to the union.
“I think the strike will last at least a month or two,” Sofus Nielson, a Ford employee for 29 years, including fifteen at the Wayne plant, commented to AFP on Friday, saying he was “worried about the young workers ” who have lower salary scales and benefits. For Jillian Gray, employed at the same site for sixteen years, “it was high time. We need this to keep up with the economy, (…) to be able to buy what we make.”
The movement could spread. Shawn Fain ordered the approximately 146,000 members of his organization working for these manufacturers to be ready to strike depending on the evolution of the negotiations. The last strike in the sector dates back to 2019 and only affected GM, for six weeks.
Despite his support for unions, Joe Biden could be penalized by a prolonged or widened social conflict, which may indeed weigh on growth. His economic record is already regularly criticized by Republicans, in particular because of stubborn inflation.
According to the consulting firm Anderson Economic Group (AEG), whose clients include Ford and GM, a ten-day strike by all UAW union members could represent more than five billion dollars in lost revenue for the economy. American.
40% increase
Negotiations began two months ago to develop new collective agreements for four years. The UAW is demanding a wage increase of around 40% over four years, while the three manufacturers have not gone further than 20% at most, according to the union.
The giants also notably refused to grant additional days of leave and to increase pensions, provided by funds specific to each company. In a statement, Ford said it was “absolutely committed to reaching an agreement that rewards employees and protects Ford’s ability to invest for the future.”
He called the offer made to the union days earlier “historically generous with significant wage increases” and other benefits. Interviewed on CNN on Friday, GM boss Mary Barra defended the manufacturers’ proposals, which include “not only a 20% increase in gross salary, but also profit sharing, world-class health coverage and several other features “.
Stellantis said it was “extremely disappointed by the refusal of UAW leadership to responsibly engage in reaching a fair agreement in the best interests of our employees, their families and our customers.” For Garrett Nelson, CFRA analyst, companies “are full of liquidity and (…) can probably withstand a strike longer than employees.”
This article was automatically published. Sources: ats / awp / afp
2023-09-16 02:51:07
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