UAW President Prepares For "Different" And "Confrontational" Contract Talks With Detroit Automakers

(RTTNews) - United Auto Workers or UAW President Shawn Fain is taking a new approach as contract negotiations with Detroit automakers commence this year. Fain aims to leverage politically astute strategies, impactful social media messaging, and the wave of support for organized labor to combat "corporate greed" and challenge General Motors, Ford Motor, and Stellantis, three multibillion-dollar corporations. Fain's tactics have put the UAW in the national spotlight, garnering attention for its unique stance.

During a recent Facebook Live event with members, Fain emphasized the significance of this moment for the union and working people, highlighting the need for a distinct approach throughout the negotiations. The consensus among experts and individuals involved in previous negotiations is that this year's bargaining will be characterized by its distinctiveness, confrontational nature, high costs, criticality, and unprecedented challenges.

Several factors contribute to the anticipated complexity of the negotiations. New top bargainers are seeking to establish themselves, union members are united against making concessions, and concerns about the impact of the industry's transition to electric vehicles on job security and wages loom large. Additionally, negotiations are taking place simultaneously with Canadian union Unifor, which represents 18,000 Detroit automaker employees with contracts expiring in September. While the American and Canadian unions have expressed solidarity, their joint talks add further complexity and competition for investments and jobs.

To signal the start of negotiations, the UAW has chosen a "members' handshake" between international UAW leaders and plant workers instead of the customary handshake with company officials. This departure from tradition reflects Fain's determination to prioritize the interests of UAW members and address the broken status quo with the Big Three automakers.

Fain's leadership has ushered in a culture shift within the union, adopting a more aggressive and offensive-minded approach. He has emphasized the importance of political organizing and has refrained from endorsing President Joe Biden until concerns regarding the industry's transition to electric vehicles are addressed. Fain has made it clear that the UAW is prepared to take whatever action necessary to secure its members' fair share, including work stoppages or strikes.

Analysts predict that a potential strike resulting from the negotiations could cost automakers hundreds of millions of dollars per week in earnings before interest and taxes, potentially amounting to billions of dollars in losses. In 2019, a breakdown in negotiations led to a 40-day strike against GM, resulting in an estimated $3.6 billion loss for the automaker that year.

Formal negotiations with Stellantis will begin on Thursday, followed by Ford on Friday and GM on July 18. The current contracts are set to expire on September 14 and cover approximately 150,000 UAW members. Fain has not committed to following the traditional process of selecting a target company to focus initial efforts on, potentially making negotiations more challenging.

Jeep-parent Stellantis, which faced a federal investigation leading to 18 convictions and ongoing government oversight, is expected to be a key player in the talks. UAW members employed by Stellantis have been particularly vocal and dissatisfied. Negotiations are further complicated by ongoing separate contract talks with Ultium Cells LLC, a joint venture between GM and LG Energy Solution, regarding the production of batteries for GM's electric vehicles near Lordstown, Ohio.

The negotiations will center around reinstating cost-of-living adjustments, increasing wages, retaining a platinum health-care package, and ending the tiered pay system. The UAW also aims to address the challenges posed by the industry's shift to electric vehicles, seeking a "just transition" for workers as the government invests in the EV sector.

The negotiations hold significant implications for automakers, who have long sought to reduce fixed costs. While the UAW supports variable bonuses based on company performance, the union insists on fair wages, benefits, and bonuses, ensuring that workers share in the success of the companies. The UAW also aims to protect jobs and address concerns about the impact of the industry's transformation on employment.