United Auto Workers getting ready to strike against the big three automakers

The United Auto Workers union is getting ready to go on strike as employees of the big three plan to walk off the job, demanding a pay raise and better benefits. 

The Detroit Three automakers, Ford, General Motors (GM), and Stellantis (formerly Chrysler), are in discussions with the United Auto Workers (UAW). The primary topics of discussion are labour contracts and compensation increases for American autoworkers.

UAW President Shawn Fain has voiced his displeasure with the automakers' offers. Ford, GM, and Stellantis have each offered a 20% salary increase. These proposals fall short of the UAW's demand for a 40% wage rise, which includes a 20% pay increase that is effective immediately after the contract is approved and 5% hikes each year.

The UAW has a number of demands in addition to pay increases, including the reinstatement of defined benefit pensions for all employees, a 32-hour workweek, cost-of-living increases, guarantees of job security, and a ban on the use of temporary workers. Some of these proposals, such as modifications to profit-sharing that would lower worker compensation, have been rejected by automakers.

If agreements are not made, the UAW's strike strategy calls for targeted work stops at unnamed specific U.S. auto facilities. This strategy tries to confuse the automakers and strategically interrupt production.

A UAW strike would likely have a big impact. The Anderson Economic Group has calculated that a 10-day strike could cost automakers, suppliers, and employees more than $5 billion. Additionally, the wider network of car suppliers can be affected.

President of the United States Joe Biden has urged all parties to come to an amicable deal to safeguard the future of UAW employees. The rising number of strikes in the United States this year, which reflects workers' displeasure with the state of the economy, was underlined by AFL-CIO President Liz Shuler.

In Detroit, the UAW is organising a protest to coincide with the start of possible strikes. The specifics of the targeted strikes, such as which plants will be impacted and how many workers will be involved, have not yet been made public.