The United Auto Workers union has overwhelmingly voted to authorize a strike, upping the ante for contract negotiations with a fast-approaching deadline.
The UAW voted by a 97% margin to give the green light to a strike, which could come as soon as the contracts expire on Sept. 14. The announcement was made by the union on Friday.
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“Our union’s membership is clearly fed up with living paycheck-to-paycheck while the corporate elite and billionaire class continue to make out like bandits,” UAW President Shawn Fain said. “The Big Three have been breaking the bank while we have been breaking our backs.”
The vote was expected and is a procedural step that gives union leadership the authority to call a strike if it is deemed necessary, although it is another way to apply pressure on the automakers during the talks.
The union represents some 150,000 workers at General Motors, Ford, and Stellantis, the company that took over Chrysler’s operations — collectively, the auto companies are referred to as the “Big Three.”
The UAW is seeking a 46% pay boost for hourly workers over the life of the four-year contract being negotiated. Union leadership also wants there to be a cost-of-living allowance tied to inflation, particularly given the massive price increase notched over the past few years, according to Bloomberg.
“Yes, we’re demanding double-digit pay raises. Big Three CEOs saw their pay spike 40% on average over the last four years. We know our members are worth the same and more,” the union said on its website.
The UAW wants to eliminate wage tiers and provide workers a better work-life balance, including more time off for members to spend with families. The union is also calling to increase retiree pay “significantly.”
The matter is complicated by the transition to electric vehicles. The union has expressed concerns that new EV factories might not employ as many workers as those needed in traditional auto plants and that new EV battery plants, tied to tax incentives, will offer lower wages, according to Axios.
President Joe Biden, who has championed the transition toward more eco-friendly EVs, issued a statement earlier this month attempting to strike a balance between championing the concerns of workers while also supporting EV growth.
The situation is notable because Biden has fashioned himself as the most pro-union president in history.
“The UAW helped create the American middle class, and as we move forward in this transition to new technologies, the UAW deserves a contract that sustains the middle class,” he said.
Fain, UAW’s president, was recently elected and narrowly ousted the union’s previous president by running a campaign in part pushing for a more confrontational stance in contract negotiations.
The union emphasized how Ford, General Motors, and Stellantis made a combined $21 billion in profits during the first six months of this year to bolster its demands for better worker pay and benefits.
“Record profits mean record contracts,” Fain said.
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If the sides can’t reach an agreement and Fain authorizes a strike, it would have big business and economic implications. The last time there was a UAW strike, a six-week stoppage against General Motors back in 2019, it cost the automaker $3.6 billion.
Additionally, Michigan experienced a recession during that quarter because of the high volume of GM workers who are employed there.
