The United Auto Workers union (UAW) has begun another round of strikes, this time at a Ram Truck plant in Kokomo, Indiana. The strikes began on October 5th and, as of mid-October, have closed down 25 previous factories in seven states across the United States.
The strike started when the UAW’s bargaining unit members and the personnel at the Kokomo plant failed to come to an agreement on new contracts after the previous contracts expired in June. The UAW, which represents around 40,000 factory workers, is demanding better wages and job security.
The UAW said in a statement that it was “forced to expand our strike activity” in the hopes of achieving “bargaining objectives that will improve working conditions and job security, as well as economic security for its members.” The union has also been in negotiations with General Motors, Ford, and Fiat Chrysler for new contracts.
The struck plant is the sixth largest of its kind in the United States. It produces the Ram heavy-duty pickups. The plant’s shutdown has had an effect on the supplies of these trucks, which are in demand by consumers and account for a significant portion of Fiat Chrysler’s profits.
The situation is further complicated by an ongoing labor dispute between the UAW and American Axle, which manufactures advertised parts for the pickups. Last month, the UAW staged a sit-in at the company’s Detroit plant in an effort to reach a resolution in the dispute.
No end to the strikes appears to be in sight, as both sides remain intractable. If a resolution is not soon achieved, the American automobile industry could suffer significant losses in production and profits. With UAW contract negotiations with GM, Ford, and Fiat Chrysler still ongoing, the potential losses could grow even larger if protracted strikes become a regular occurrence.
