UAW Advances Negotiations with GM and Stellantis, Ford Remains Stalled Amid Threats of Additional Strikes
United Auto Workers President Shawn Fain highlights progress in talks with General Motors and Stellantis, while Ford negotiations lag, as the union signals potential for more walkouts to secure improved contracts.
Highlights
- UAW President Shawn Fain announced notable progress with General Motors and Stellantis, contrasting with slower developments at Ford.
- The union continues to demand stronger contract proposals from all Big Three automakers, warning of further strike actions if improvements aren't achieved.
- The ongoing strike has potentially caused $7.7 billion in economic impact, according to Anderson Economic Group.
United Auto Workers (UAW) President Shawn Fain revealed significant advancements in negotiations with General Motors (GM) and Stellantis (STLA), though talks with Ford (F) remain stagnant as the strike involving around 34,000 union members enters its fifth week.
“In the last 24 hours, we've witnessed serious progress from both Stellantis and GM,” Fain stated during a Friday livestream. However, he criticized Ford for hesitating, particularly regarding the Kentucky Truck plant, suggesting the company resists meeting the union's demands.
Last week marked a new phase in the strike with surprise walkouts at Ford’s largest facility, the Kentucky Truck plant, signaling the union's readiness to expand unannounced strikes throughout the week.
“GM and Stellantis clearly responded by increasing their financial offers,” Fain reported, noting that the latest proposals from all three automakers include substantial wage increases, with raises now reaching approximately 23%, up from an initial 9% offer.
Despite these developments, the union insists on improved terms and warns that more walkouts are imminent if negotiations stall further.
Marick Masters, Wayne State University business professor and UAW historian, told Investopedia that key issues remain unresolved, including the integration of joint venture battery plants under the national agreement, wage levels, and retirement benefits.
The shift toward electric vehicles presents a critical challenge, especially with Ford and Stellantis, whereas GM has reportedly agreed to include electric battery manufacturing workers under the UAW national contract.
Economic analysis by Anderson Economic Group estimates the strike’s financial toll at around $7.7 billion during its first four weeks. CEO Patrick Anderson cautioned that the burden primarily falls on workers and small to medium businesses, rather than the Detroit automakers themselves.
Since the strike's inception on September 15, GM shares have declined over 11%, Ford shares have dropped nearly 7%, while Stellantis shares have seen a slight increase of approximately 0.5% as of Friday’s market close.
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