Dive Brief:
- The United Auto Workers has expanded its strike against Stellantis and directed roughly 6,800 of its members to walk off the job Monday morning at the automaker’s Sterling Heights Assembly Plant in Sterling, Michigan.
- It’s the second biggest walkout since the strikes at the big three automakers began on Sept. 15. Earlier this month, roughly 8,700 workers represented by the UAW walked off the job at Ford’s Kentucky Truck Plant.
- The 5-million-square-foot Sterling Heights Assembly Plant assembles the popular Ram 1500 pickup, which is the automaker’s best-selling vehicle, with sales of 332,000 units in the first nine months of the year.
Dive Insight:
The escalation of the strike against Stellantis was triggered by the UAW’s dissatisfaction with the company’s current wage proposal as part of a new 4-year labor contract. Targeting the company’s profitable truck factory, as the UAW did with Ford, now puts added pressure on Stellantis to increase its offer to the union.
Last month, the UAW rejected Stellantis’ previous offer, which included wages increases of 21%, but Stellantis presented an updated offer last week.
“We are outraged that the UAW has chosen to expand its strike action against Stellantis,” the automaker said in a statement. “Last Thursday morning, Stellantis presented a new, improved offer to the UAW, including 23% wage increases over the life of the contract, nearly a 50% increase in our contributions to the retirement savings plan, and additional job security protections for our employees.”
The UAW is demanding cost-of-living adjustments, retiree benefit improvements, more paid time off, the right to strike against plant closures, an end to tiered wages and benefits, and the return of defined benefit pensions and retiree healthcare.
The UAW claims the Big Three made a combined $21 billion in total profits in just the first six months of this year. But the automakers won’t provide its members a fair share of the record profits in the form of higher wages and improved benefits, the union said.
“Despite having the highest revenue, the highest profits (North American and global), the highest profit margins, and the most cash in reserve, Stellantis lags behind both Ford and General Motors in addressing the demands of their UAW workforce,” the union said in a statement. “Currently, Stellantis has the worst proposal on the table regarding wage progression, temporary worker pay and conversion to full-time, cost-of-living adjustments and more.”
The walkout at the Sterling Heights Assembly Plant brings the total number of UAW members on strike at the Big Three automakers to over 40,000, according to the UAW.
Approximately 5,500 workers at the Stellantis Toledo Assembly Complex in Ohio are also on strike. That facility, which assembles the popular Jeep Wrangler, was one of the first Big Three plants targeted by the UAW in September.
As of Monday, the strike has impacted roughly 15,820 workers at Stellantis. The company said the strikes will have long-lasting consequences for the Big Three.
“With every decision to strike, the UAW sacrifices domestic market share to non-union competition,” Stellantis said in a statement. “These actions not only decrease our market share, but also impact our profitability and therefore, our ability to compete, invest and preserve the record profit sharing payments our employees have enjoyed over the past two years.”
