Tensions rose in contract talks between the United Auto Workers union and Stellantis on Tuesday with the union president accusing the company of seeking concessions in contract talks when the union wants gains, as a September strike threat looms.
UAW President Shawn Fain said in a statement that Stellantis has broken a pledge not to seek givebacks in this round of talks, in which the union is seeking more than 40% general pay raises over four years, restoration of pensions for newer hires, cost-of-living increases, an end to wage tiers, and other benefits.
A union spokesman said singling out Stellantis doesn’t mean the UAW has picked a company as a strike target, and it could choose all three. Stellantis idled its Jeep plant in Belvidere earlier this year. Ford operates an assembly plant on Chicago’s Southeast Side.
The union’s contracts with General Motors, Ford and Stellantis all expire at 11:59 p.m. Sept. 14, and Fain has told workers they should be willing to go on strike to make major gains.
The UAW represents about 146,000 workers at the three companies. In the past its contracts had set the standard for manufacturing wages and benefits for blue-collar jobs nationwide.
As the industry undergoes a historic transition from internal combustion engines to electric vehicles, the automakers will need thousands of workers to staff battery plants that are joint ventures with battery companies. The UAW also sees this year’s contract as a crucial opportunity to ensure representation in the industry’s jobs of the future.
In a Facebook Live appearance Tuesday, Fain clearly threatened to strike one or more of the companies. He told workers the UAW strike fund is healthy and the leadership has a plan for a work stoppage. “Come Sept. 14, if these companies don’t deliver, they’re going to see this plan unfold,” he said.
Fain said bargainers are making progress, but he’s been shocked to see Stellantis’ list of demands. The company, he said, wants to be able to punish workers more for missing work, has proposed additional tiers of wages, and is seeking cuts to existing medical coverage. It also wants changes in the profit-sharing formula, and cuts in 401(K) contributions, he said. “Management chose to spit in our faces,” he said.
Top scale production workers at the companies make about $32 per hour, and the companies have said it’s much higher when benefits and bonuses are added in. Ford, for instance, says in a statement that benefits and bonuses push the yearly package value to about $112,000.
Marick Masters, a business professor at Wayne State University in Detroit, said there is some “deep friction” between the union and Stellantis, especially over scheduling that can require workers to be on the job 12 hours per day for seven days per week.
“It doesn’t surprise me that there’s tension between those two parties,” Masters said. “But I wouldn’t read more into it than that. I don’t think it means that Stellantis is the likely target” in bargaining and possibly for a strike.
A message was left Tuesday seeking comment from Stellantis. On Aug. 1 the company said that it has been clear from the start that it’s not seeking concessions.
Last week the company said in a statement that intends to fairly reward union employees for their contribution to the company’s success. “It will be critical to find common ground that doesn’t jeopardize our ability to continue investing in the affordable products, services and technology that our customers want and that would allow us to continue providing good jobs here at home,” the statement said.
Executives at all three companies say they have invested in U.S. manufacturing and they have plowed much of their profits to develop and build electric vehicles.
The union says wages have been stagnant for years after it agreed to concessions to get the companies through the Great Recession.
