Why the UAW is threatening strikes against Stellantis again
The United Auto Workers is taking steps toward holding strikes that could interfere with some of Stellantis’s operations in the United States. Stellantis, formed in 2021 through a merger, is the international automaker of Chrysler, Dodge, Fiat, Jeep, and other vehicles. These labor actions would be happening less than one year after the UAW secured historic deals with Detroit’s three big automakers that followed strikes by thousands of its members. The Conversation U.S. asked Marick Masters, a Wayne State University scholar of labor, politics, and business issues, to explain why the union could be on the verge of a new round of strikes and other developments that are keeping the UAW in the news. What’s behind the rift between the UAW and Stellantis? On September 16, 2024, the UAW filed a complaint with the National Labor Relations Board against Stellantis. The UAW is accusing the company of violating the commitment it made in the 2023 labor deal to invest in the U.S. Its biggest concerns are over the lack of progress seen so far with Stellantis’s planned reopening of an idled factory in Belvidere, Illinois, and the establishment of additional operations in that small city. The other main point of contention is that the company reportedly plans to stop producing Dodge Durango SUVs in Detroit and to assemble them in Mexico instead. Stellantis “wants to go back on the deal,” UAW President Shawn Fain said in September, in reference to the contract his union agreed on with the company in 2023. “We intend to enforce our contract, and to make Stellantis keep the promise”—possibly by holding a strike. The automaker denies breaking the terms of the labor contract it signed with the UAW in the fall of 2023. That deal included clauses that allow the company to shift investments and operations to new locations as market conditions and the company’s financial performance require. Stellantis’s sales have declined sharply around the world, including in North America over the past year. The company’s profits fell by nearly 50% in the first half of 2024. Stellantis has laid off almost 2,500 workers at a plant in Warren, Michigan, and the company has indicated that it could furlough more employees. The UAW argues that Stellantis has other options, such as holding back on raises for its top executives. What’s going on with Ford? The UAW announced that it had authorized a strike at midnight on September 26, 2024, that would have involved about 500 tool-and-die workers at the Dearborn, Michigan, factory where Ford produces its popular F-150 pickup trucks. UAW Local 600 and Ford had been negotiating for more than a year on a local agreement that expired in 2023 at the same time the national agreement did. The two sides reached a tentative agreement on September 25, 2024, averting a strike. The main points of contention with Ford were job security, outsourcing and wage parity for skilled trades. How has Fain performed to date? I believe Fain has earned high marks for his performance since taking office in March 2023. He led the UAW through an innovative strike, using a new strategy to simultaneously negotiate contracts with Detroit’s Big Three automakers. Those deals substantially increased wages and provided for billions of dollars in new investments in the U.S. that would enhance job stability for the union’s members. While leading the UAW through the 2023 strikes and seeking to attract new members, Fain has opened and expanded direct lines of communication with the union’s rank and file. For example, he frequently does livestreamed presentations to update members and make important announcements. He also makes many visits to strike and organizing sites to convey the UAW’s message to members and their local communities. But there are setbacks and tensions, too. Fain and the rest of the UAW’s leadership are still contending with a strict oversight process led by Neil Barofsky, the federal monitor for the United States District Court for the Eastern District of Michigan. He was appointed in 2021 to make sure that the union would be corruption-free following a settlement the UAW reached in 2020 with the federal government. The settlement closed a multiyear corruption probe that resulted in convictions and prison sentences for several of the union’s leaders who were found guilty of embezzlement, racketeering, and other crimes. Barofsky is now investigating allegations that Fain retaliated against two other senior union officials for their refusal to follow orders they deemed to be improper, such as providing benefits for Fain’s fiancée. Barofsky has also accused the union of being too slow to release documents. How is the UAW’s drive to gain new members going? The UAW launched an ambitious organizing campaign in late 2023 to unionize the more than a dozen nonunion automakers operating in the U.S. It has won one major victory so far. Workers at Volkswagen’s plant in C
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The United Auto Workers is taking steps toward holding strikes that could interfere with some of Stellantis’s operations in the United States. Stellantis, formed in 2021 through a merger, is the international automaker of Chrysler, Dodge, Fiat, Jeep, and other vehicles.
These labor actions would be happening less than one year after the UAW secured historic deals with Detroit’s three big automakers that followed strikes by thousands of its members.
The Conversation U.S. asked Marick Masters, a Wayne State University scholar of labor, politics, and business issues, to explain why the union could be on the verge of a new round of strikes and other developments that are keeping the UAW in the news.
What’s behind the rift between the UAW and Stellantis?
On September 16, 2024, the UAW filed a complaint with the National Labor Relations Board against Stellantis.
The UAW is accusing the company of violating the commitment it made in the 2023 labor deal to invest in the U.S. Its biggest concerns are over the lack of progress seen so far with Stellantis’s planned reopening of an idled factory in Belvidere, Illinois, and the establishment of additional operations in that small city. The other main point of contention is that the company reportedly plans to stop producing Dodge Durango SUVs in Detroit and to assemble them in Mexico instead.
Stellantis “wants to go back on the deal,” UAW President Shawn Fain said in September, in reference to the contract his union agreed on with the company in 2023. “We intend to enforce our contract, and to make Stellantis keep the promise”—possibly by holding a strike.
The automaker denies breaking the terms of the labor contract it signed with the UAW in the fall of 2023. That deal included clauses that allow the company to shift investments and operations to new locations as market conditions and the company’s financial performance require.
Stellantis’s sales have declined sharply around the world, including in North America over the past year. The company’s profits fell by nearly 50% in the first half of 2024. Stellantis has laid off almost 2,500 workers at a plant in Warren, Michigan, and the company has indicated that it could furlough more employees.
The UAW argues that Stellantis has other options, such as holding back on raises for its top executives.
What’s going on with Ford?
The UAW announced that it had authorized a strike at midnight on September 26, 2024, that would have involved about 500 tool-and-die workers at the Dearborn, Michigan, factory where Ford produces its popular F-150 pickup trucks.
UAW Local 600 and Ford had been negotiating for more than a year on a local agreement that expired in 2023 at the same time the national agreement did. The two sides reached a tentative agreement on September 25, 2024, averting a strike.
The main points of contention with Ford were job security, outsourcing and wage parity for skilled trades.
How has Fain performed to date?
I believe Fain has earned high marks for his performance since taking office in March 2023. He led the UAW through an innovative strike, using a new strategy to simultaneously negotiate contracts with Detroit’s Big Three automakers. Those deals substantially increased wages and provided for billions of dollars in new investments in the U.S. that would enhance job stability for the union’s members.
While leading the UAW through the 2023 strikes and seeking to attract new members, Fain has opened and expanded direct lines of communication with the union’s rank and file. For example, he frequently does livestreamed presentations to update members and make important announcements. He also makes many visits to strike and organizing sites to convey the UAW’s message to members and their local communities.
But there are setbacks and tensions, too.
Fain and the rest of the UAW’s leadership are still contending with a strict oversight process led by Neil Barofsky, the federal monitor for the United States District Court for the Eastern District of Michigan. He was appointed in 2021 to make sure that the union would be corruption-free following a settlement the UAW reached in 2020 with the federal government. The settlement closed a multiyear corruption probe that resulted in convictions and prison sentences for several of the union’s leaders who were found guilty of embezzlement, racketeering, and other crimes.
Barofsky is now investigating allegations that Fain retaliated against two other senior union officials for their refusal to follow orders they deemed to be improper, such as providing benefits for Fain’s fiancée. Barofsky has also accused the union of being too slow to release documents.
How is the UAW’s drive to gain new members going?
The UAW launched an ambitious organizing campaign in late 2023 to unionize the more than a dozen nonunion automakers operating in the U.S. It has won one major victory so far.
Workers at Volkswagen’s plant in Chattanooga, Tennessee, voted to join the UAW in April 2024. The union is now negotiating its first contract with the German company.
But a month later, the UAW lost an organizing vote at the Mercedes-Benz plants in Alabama, where 56% of rank-and-file workers voted against UAW representation.
The UAW has not filed any other petitions with the NLRB to vote on union membership at a nonunion plant.
What’s the UAW’s role in the 2024 elections?
After securing additional commitments from the Biden administration for a more union-friendly transition to the production of electric vehicles, the UAW endorsed President Joe Biden. It endorsed Kamala Harris soon after Biden dropped his reelection bid—as have most labor unions.
But that doesn’t mean every UAW member will vote for Harris in 2024. Only about two-thirds of union members believe the Democratic Party best serves their interests, according to a 2024 Gallup Poll.
Some UAW members who don’t back Harris support Donald Trump, even though the former president has declared that he “hates” paying overtime and supports the firing of striking workers, which is against the law. Other UAW members oppose the Biden administration’s policies in the Middle East.
Despite that division, the UAW had committed to turning out votes for Harris, especially in Michigan, an important swing state where about 130,000 of its members live.
“I believe we’re gonna win Michigan,” Fain said in an early August interview with CBS’s Face the Nation. “We got to keep the pedal to the metal until the end of this thing. And ensure it happens, and it’s going to happen.”
Marick Masters is a professor emeritus of business at Wayne State University.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
