In-depth: Examining current status of negotiations between UAW, Big Three auto companies

"We are winning. We are making progress, and we are headed in the right direction"
UAW on strike
Photo credit Bill Pugliano - Getty Images

Buffalo, N.Y. (WBEN) - Friday was another step in the right direction in contract negotiations between the United Auto Workers (UAW) union and Detroit's Big Three auto companies of Ford, GM and Stellantis.

As UAW President Shawn Fain was about to take to the podium and address his union members Friday afternoon via Facebook Live, he said there was another a major breakthrough in negotiations that would change the course of negotiations, but also change the future of the union and industry.

"We were about to shut down GM's largest moneymaker in Arlington, Texas. The company knew those members were ready to walk immediately, and just that threat has provided a transformative win. GM has now agreed, in writing, to place their electric battery manufacturing under our national master agreement," said Fain during his Friday briefing.

Fain says the plan from GM was to draw down engine and transmission plants, and permanently replace them with low-wage battery jobs. That wasn't good enough for leadership atop UAW, and they managed to come away with another victory in negotiations.

"It's a game changer, and it ensures the future of our younger generation that is going to be coming up behind us," said Ray Jensen, UAW Region 9 Assistant Director in an interview with WBEN.

"None of us want to go on strike, let's be clear about that. But sometimes when your labor isn't valued, you have the right to withhold that labor. It just shows that the UAW has the power and the leverage, and we're taking the fight to the companies, and we will just wait to see."

As Art Wheaton from The Worker Institute at Cornell explains, this is a significant development and advancement in negotiations because the battery plants are not owned 100% by GM, they're owned by joint ventures.

"There were many people arguing they couldn't do it. It's always been optional for the companies to agree to do that with the bulk joint ventures, but this was a significant thing for General Motors to agree to, so that was very optimistic," said Wheaton in an interview with WBEN. "I think it was just the overall tone from Shawn Fain, this one was much more upbeat and optimistic with some light at the end of the tunnel. I thought it was a good day for all auto workers and the auto companies."

Wheaton adds this gives the UAW some hope that the transition to electric vehicles in the near future will be a "just transition".

Also during Fain's update on Friday, he talked about progress made with automakers on important talking points, including cost of living adjustments, meaningful pay raises, retirement security and work-life balance.

One other point Wheaton noticed on Friday that stuck out in his mind is Fain stressing the fight in negotiations to also cater to the temporaries and part-timers, and that people that are, what he calls, "in progression".

"You get hired at a low rate or you get hired as a temporary - you can be a temporary for a long time - and once they do make the decision to hire you, it still takes you eight more years to reach the same level of pay as your co-workers. So I think the struggle is not for the higher-paid auto workers, it is absolutely for the temps, the part-timers, and the ones making less than that full rate for the UAW," Wheaton said.

As a result of this development, Fain called off the strike at the Arlington Assembly Plant, and held off any other auto workers from standing up and joining the picket lines on strike.

"Here's the bottom line: We are winning. We are making progress, and we are headed in the right direction," Fain said. "What has moved the needle is our willingness to take action, to be flexible, to be aggressive when we have to, and to be strategic. Throughout this strike, I've been heartened to see our members talking about and debating our strategy. We're thinking together about the core question of the labor movement. How do working class people build the power we need to win what we deserve?"

With Friday's update in negotiations bearing no additional workers added to the strike of about 25,000 auto workers across the nation, does that present any brighter light at the end of the tunnel with winning a fair contract?

While it may not signal any sort of end to the strike in the near short-term future, Jensen says it goes to show that the UAW's fight in these negotiations are bearing some fruit for the future of all auto workers.

"It shows that this membership is united, it shows we are being very strategic, and we have the leverage. We are bringing the game to the auto companies, and they're not used to that," he said. "It's a different UAW than it has been in the past, and we're taking the fight to them."

Wheaton has also taken notice that the UAW's tactics with negotiations are working to good effect. He believes there is absolutely a much brighter light at the end of the tunnel for this, but also noticed some very subtle threats or potential actions from Fain that indicate no stopping from the UAW's end.

"What he said was had General Motors not made that significant change at the very last minute, he would have struck the Arlington assembly plant and maybe the engine and transmission plants. I think it was kind of a signal to the other two companies, Ford and Stellantis, saying they move the needle on this, and they save from getting the assembly plant for the big dollar value truck plant from going on strike," Wheaton explained. "I think that's a signal saying, 'You better move forward in negotiations. The next round of strikes might be more painful.'"

So is there any next domino to fall in the coming days or weeks that can change the tide of negotiations or the strike that much more? While Jensen says there's not one aspect of negotiations in particular, he does feel the Big Three auto companies are starting to pay attention more.

"We're not where we need to be yet, as President Fain stated earlier, but we're definitely making forward progress. And it's a good sign for our membership, because when we win - I'll say when we win these huge contracts - it's going to be a game changer for all of us. Not only for the UAW, but for all labor movements across the country," Jensen said.

As for Wheaton, he thinks the biggest sign is to see if General Motors can also getting the cost of living adjustment back in place, as they're currently falling behind the other two companies.

As for both Stellantis and Ford, Wheaton wants to see if progress can be made on their battery plans, as neither company has one that's up-and-running with a unionized workforce yet. GM is the only one that does.

"It's a signal for what's coming up in the future, but I think progress is being made," Wheaton said. "I think [Fain] was also signaling to the membership that look, we're getting closer, we're making big wins, and it's not necessarily going to win everything that they want. They're not going to get everything they want, but he was celebrating some of the big advances they've made for their contract thus far."

Featured Image Photo Credit: Bill Pugliano - Getty Images