About 12,700 United Auto Workers (UAW) members in the U.S. auto industry went on strike for another day on Monday, September 18, with the UAW threatening to expand the strike against Detroit automakers. Four days after UAW workers went on strike at three U.S. factories, labor tensions remain high. Unions and Jeep maker Strantis have been attacking each other over the company's proposal to potentially close 18 U.S. plants.
Stratis has now submitted a new contract proposal to the UAW. The plan could reduce the number of parts and distribution facilities the company has in the United States, but the automaker said it is not intended to lay off employees.
The automaker has separately offered to repurpose a now-idled assembly plant in Illinois. The plant that makes Jeep Cherokees closed in February, resulting in the indefinite layoff of 1,350 people, some of whom already worked elsewhere in the company.
Sources said the plans could affect thousands of UAW members, reduce the automaker's presence in North America and create a new "modernized" parts and distribution network.
Strantis described Monday's meeting with UAW leaders as "constructive and focused on where we can find common ground":
We will continue to listen to the UAW to determine where we can work together and will continue to bargain in good faith until an agreement is reached. We look forward to getting everyone back to work as soon as possible.
UAW President Shawn Fain criticized the company's handling of the proposal, saying Stellantis was using workers at its Belvedere, Ill., plant as bargaining chips.
Although the company said Monday it was committed to finding a solution for the facility, it was unclear whether the proposal was still under discussion.
On Monday morning, Fain reiterated that the UAW was willing to call more strikes without fear that negotiations would drag on longer. He said if these companies "do not respect the demands of our workers, then we will escalate our actions."
Discussions about wages are at the center of labor-management negotiations, with companies conducting parallel negotiations with the UAW on new four-year contracts for 146,000 autoworkers.
The companies have proposed wage increases of about 20 percent over four years, while the UAW has been asking for raises to about 30 percent. The UAW also wants to include cost-of-living adjustments into base pay, while automakers offer one-time payments to account for inflation.
Wells Fargo analysts estimate the proposals would add about $700 million to $1.2 billion to each company's costs over the four-year life of the contracts. Based on the union's demand for a 30% wage increase, plus cost-of-living adjustments, those costs would reach $1.7 billion to $2.4 billion.
Some workers have expressed concern that they will struggle to receive financial support if their factories close due to the knock-on effects of strikes at other factories. A union official confirmed Monday that laid-off non-striking workers will receive $500 weekly wage support, just like striking workers.
Detroit automakers' frustration came to a head late last week after the UAW strike began. Auto industry executives said they were disappointed with the union's decision to strike, with some saying they had proposed the largest pay increases ever.
The UAW said it made some progress in discussions with Ford over the weekend, calling it a "fairly productive conversation" with the company. Ford said:
Committed to reaching an agreement with the UAW that rewards our workers and allows Ford to invest in the future.