The Big Three automakers, General Motors, Ford and Fiat Chrysler, faced a significant challenge recently when autoworkers at each of their plants across North America went on strike in response to stalled contract negotiations. The United Auto Workers (UAW) union, which represents a majority of the autoworkers, officially called the strike last Sunday.
This is the first strike staged against the Big Three since 2007 and it will undoubtedly bring significant disruption to the companies’ manufacturing, sales and profits. The main point of contention in the negotiations is the UAW’s demand for improved wages for its members. Although the automakers have offered wage increases on average of 3-4%, union negotiators have thrust for a far more substantial amount.
The implications of the strike are far-reaching, with experts estimating that the Big Three could face losses of $1 billion per day if it continues. Aside from the financial impact, the stoppage is likely to have an effect on global auto supply chains, as parts production halts and large-scale deliveries are delayed.
The workers at each of the companies’ factories staged sit-ins and picket lines, which saw thousands of workers strike in peaceful protests outside the plants. The strikers indicated that they were willing to stay on strike “as long as it takes” to achieve their demands for improved wages and benefits.
The UAW is confident of its position, with union leaders repeatedly stressing the security and strength of the strike’s organization. Although the Michigan-based labor union was initially uncertain due to fears of members crossing picket lines, it now believes that only individual workers have done so and not in significant numbers.
The upcoming days will be critical in the progress of the contract negotiations. As the strike enters its seventh day, it is becoming increasingly evident the increased attention and conflict will result in a rapid resolution. All parties remain hopeful, with both sides continuing conversations in an attempt to bring an end to the disruption and achieve a satisfactory deal.
