US: Simultaneous strikes hit 'Big Three' car manufacturers

Thousands of workers from the United Auto Workers (UAW) union began strikes on on Thursday night at three factories belonging to the so-called "Detroit Three" — Ford, General Motors and Chrysler parent Stellantis.

UAW President Shawn Fain announced the strike at three major car manufacturers two hours before the midnight contract expired.

Amid persistent inflation, the union is hoping it can force through pay gains from the top three US car manufacturers.

What action is planned?

"The UAW Stand Up Strike begins at all three of the Big Three," the union said in a post on social media platform X, adding that workers were striking at three separate plants.

"Tonight, for the first time in our history, we will strike all three of the Big Three at once," Fain said.

Workers are set to strike at one plant at each company: a GM plant in Wentzville, Missouri; a Stellantis facility in Toledo, Ohio; and a Ford plant in Wayne, Michigan.

The stoppages will be restricted to final assembly work and paint operations.

Fain said the targeted strike was intended to heap pressure on the carmakers while strikes continue.

What is the wider fallout of the action?

Some 12,700 workers were staging walkouts on Friday.  The announcement came after employers failed to reach a last-minute agreement over pay with the union, which represents about 150,000 workers.

Any prolonged conflict could prove a thorn in the side of US President Joe Biden who has made EV car manufacturing a key part of his administration's efforts to tackle climate change.

But the move to electric vehicles could threaten some of the union-protected jobs. The UAW has not endorsed Biden for re-election.

The president spoke on Thursday evening by telephone with Fain and the heads of the automakers to discuss the negotiations.

What is the union saying?

Fain says the plan is to gradually expand strike action and keep the companies off balance and maximize the UAW's bargaining position.

"It is long past time to stand up for the working class, to stand up for our communities and to stand up against unchecked corporate greed," Fain said.

The union wants to push through substantial gains against a backdrop of high inflation with a narrow labor market.

The talks come at a time when the three companies, known as "The Detroit Three," are still buoyed by a period of profitability.

What are the companies saying?

Ford said the union responded to its offer late, with an "unsustainable" counteroffer just hours before the union announced the industrial action.

"Ford has bargained in good faith in an effort to avoid a strike," the company said.

Ford added that it "remains absolutely committed to reaching an agreement that rewards our employees and protects Ford's ability to invest in the future as we move through industry-wide transformation" towards the electric vehicle market.

There was no immediate comment from General Motors and Stellantis.

rc/ab (Reuters, AP)