UAW's clash with automakers shows off a more confrontational union as strike deadline looms

UAW's clash with Big 3 automakers shows off a more confrontational union as strike deadline looms

A 46% pay raise. A 32-hour week with 40 hours of pay. A restoration of traditional pensions. The demands that a more combative United Auto Workers union has pressed on General Motors, Stellantis and Ford are edging it closer to a strike when its contract ends Sept. 14. 

The automakers, which are making billions in profits, have dismissed the UAW's wish list. They argue that its demands are unrealistic at a time of fierce competition as the world shifts from internal combustion engines to electric vehicles. The wide gulf between the sides could mean a strike against one or more of the automakers, which could send already-inflated vehicle prices even higher.

Keith Crowell is president of UAW Local 276 representing the GM Arlington assembly and its more than 5,000 employees. All of GM’s full-size SUVs come from the Arlington plant. 

"Do I know a strike is going to happen? No, I don’t. But one thing for sure: If we strike, we don’t want to see a strike. We don’t. But if we do, we’re ready," he said. "We don’t want to strike. But to get fair wages, to get a fair shake in life, you have to suffer."

However, GM said in a video statement released Tuesday that the company will suffer if it caves to union demands.

General Motors says a strike is bad news for everyone. 

"Unfortunately, in 2019, our last contract negotiations, we did have a strike which resulted in a negative on all our stakeholders, employees, customers, our supply base, our communities and the overall economy," said GM Global Manufacturing and Sustainability Executive Vice President Gerald Johnson.

There are 146,000 UAW members, and the union says just like in 2019, members have once again overwhelmingly voted in favor of authorizing a work stoppage if a new contract is not reached by the time the old one expires.

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Looming UAW strike could cost US economy more than $5B in just 10 days

If the United Auto Workers decides to strike against the "Big Three" Detroit automakers when the current contract expires next month, it could cost the U.S. economy more than $5 billion.

They argue that the Detroit Three automakers have collectively posted net income of $164 billion over the past decade and $20 billion of it this year. 

Crowell says he’s in contact with national union leaders to monitor how negotiations shake out.

"Strikes are scary," he said. "We’re just ready, getting ready."

On Labor Day, President Joe Biden said he did not think there would be a strike. The UAW president said he was shocked by those comments.