US auto workers go on strike seeking better wages and benefits

About 13,000 US auto workers stopped making vehicles and went on strike after their leaders couldn’t bridge a giant gap between union demands in contract talks and what Detroit’s three automakers are willing to pay.

Members of the United Auto Workers union began picketing on Friday at a General Motors assembly plant in Wentzville, Missouri, a Ford factory in Wayne, Michigan, near Detroit, and a Stellantis Jeep plant in Toledo, Ohio.

It was the first time in the union’s 88-year history that it walked out on all three companies simultaneously as four-year contracts with the companies expired at 11:59 pm on Thursday.

The strikes will likely chart the future of the union and of America’s homegrown auto industry at a time when US labour is flexing its might and the companies face a historic transition from building internal combustion automobiles to making electric vehicles.

If they last a long time, dealers could run short of vehicles and prices could rise. The walkout could even be a factor in next year’s presidential election by testing Joe Biden’s proud claim to be the most union-friendly president in American history.

“Workers all over the world are watching this,” said Liz Shuler, president of the AFL-CIO, a federation of 60 unions with 12.5 million members.

The strike is far different from those during previous UAW negotiations. Instead of going after one company, the union, led by its pugnacious new president, Shawn Fain, is striking at all three. But not all of the 146,000 UAW members at company plants are walking picket lines, at least not yet.

Instead, the UAW targeted a handful of factories to prod company negotiators to raise their offers, which were far lower than union demands of 36 percent wage increases over four years. GM and Ford offered 20 percent and Stellantis, formerly Fiat Chrysler, offered 17.5 percent.

Far apart on terms

The standoff has become a political issue with President Joe Biden, facing re-election next year, prominently calling for a deal.

The Detroit Three have held simultaneous talks with the union, which represents almost 150,000 workers.

Union leaders this week described the sides as far apart and have signalled for months that they would not hesitate to shut down Motor City.

The union said it wants a 40 percent raise, and companies have offered up to 20 percent, without key benefits demanded by the union.

The UAW has a strike fund of $825 million.