After a month on the picket lines, the UAW strike has entered a new phase with new strikes happening anytime and anyplace.
UAW President Shawn Fain announced the new direction in a Facebook Livestream video. This new phase is meant to force the automakers to “stop playing games and get us a real deal” according to Fain.
UAW strike update
Before we get into the new phase, let’s recap where we are at what has happened.
Since September 14, 2023, the UAW strike has seen picket lines full of workers demanding better pay, an end to tier systems to get top pay, better working conditions and a four-day work week. This strike is aimed at Ford, General Motors and Stellantis (formerly Chrysler).
This strike is different than in year’s past with the UAW deciding to negotiate with each of the Detroit 3 automakers directly. In the past, the UAW would select one automaker, negotiate a contract with them and the other automakers would agree to the contract.
With this new tactic, comes a new targeted strike idea where UAW members strategically strike plants and parts distribution centers putting pressure on automakers.
The new phase will alter this targeted strike in regards to timing.
In the past few weeks, the UAW has chosen Friday as the day to announce further strikes and those strike locations. This, according to Fain, turned into a situation where automakers would wait until Friday before presenting a new offer. That game of waiting until Friday and calling a strike, changed drastically when the UAW announced a strike at the Ford Kentucky Truck plant on Wednesday.
The Ford Kentucky Truck plant is critical to Ford’s business. It produces the Ford Super Duty, Ford Explorer and Lincoln Navigator. Also, it is a profit generator bringing in $28 billion each year.
Targeting this plant put a lot of pressure on Ford, who Fain said, wasn’t negotiating at a pace he liked nor were they presenting a new contract proposal.
Fain also pointed out the Kentucky Truck plant makes $49,000 per minute for the automaker and that’s more than the employees who build them make in a year.
Fain has described this as a fight for “social justice and social equality.”
Now, with this new phase of the strike, Fain plans to react more swiftly to slow negotiations by calling strikes wherever and whenever they need to accomplish their goals.
Ford and other automakers have countered Fain’s claims with statements on how the UAW strike is going to crimple them and damage the economy. The automakers have also laid off people as a result of the strike causing part’s shortages and other issues.
The economic impact of this strike is now being measured in billions according to the Anderson Economic Group. In fact, the group says, the economic losses totaled over $1.6 billion in just the first week.
The bottom line
Consumers should be ready for delays in getting new vehicles, parts and even having new vehicles shipped to dealers. The longer this strike goes on, the more suppliers, communities, dealers and many other businesses will be severely impacted. Hopefully this UAW strike will end soon.
