DETROIT (WWJ) - It's back to the bargaining table one day after thousands of UAW workers took to the picket line at midnight Friday when Detroit's Big Three automakers failed to reach a new contract with union members.
And there's no sign of a potential breakthrough deal as of Saturday afternoon.
It's a historic moment for the UWA, who has never before gone on strike against the Big Three -- Ford, General Motors, and Stellantis -- at one time.
While only 13,000 workers at GM Wentzville Assembly in Missouri (Local 2250) Stellantis' Toledo Assembly Complex (Local 12) in Ohio and Ford Michigan Assembly Plant, final assembly and paint only, (Local 900) are currently on strike, its ripple effects are already being felt in Detroit.
Officials at Ford Motor Co. said on Friday they will need to lay off about 600 employees at the Michigan Assembly Plant in Wayne as a direct result of the UAW strike, WWJ's Jeff Gilbert reported.
"You'll recall that strike was targeted to the final assembly and paint operations, while workers in body construction, south sub-assembly and integrated stamping have now been notified not to report to work because obviously there's no work for them to do with the others on strike," Gilbert said.
Ford is stressing that this is not a lockout, but in fact a consequence of the strike.
“Our production system is highly interconnected, which means the UAW’s targeted strike strategy will have knock-on effects for facilities that are not directly targeted for a work stoppage. In this case, the strike at Michigan Assembly Plant’s final assembly and paint departments has directly impacted the operations in other parts of the facility," Ford said in a prepared statement.
"Approximately 600 employees at Michigan Assembly Plant’s body construction department and south sub-assembly area of integrated stamping were notified not to report to work Sept. 15. This is not a lockout. This layoff is a consequence of the strike at Michigan Assembly Plant’s final assembly and paint departments, because the components built by these 600 employees use materials that must be e-coated for protection. E-coating is completed in the paint department, which is on strike."
Gilbert added that a source at Ford told him that, under Michigan law, workers who are laid off because of a strike are not entitled to unemployment or to company benefits.
UAW President Shawn Fain fired back at Ford on Saturday, Sept. 16, heavily criticizing the move and stating that Ford doesn't have to lay off any workers.
“Let’s be clear: if the Big Three decide to lay people off who aren’t on strike, that’s them trying to put the squeeze on our members to settle for less. With their record profits, they don’t have to lay off a single employee. In fact, they could double every autoworker’s pay, not raise car prices, and still rake in billions of dollars," Fain said in his statement.
“Their plan won’t work," the UAW president stressed. "The UAW will make sure any worker laid off in the Big Three’s latest attack will not go without an income. We’ll organize one day longer than they can, and go the distance to win economic and social justice at the Big Three.”
Meanwhile, General Motors sent a memo to employees at their Fairfax Assembly Plant on Friday, Sept. 15, warning them that production at the facility -- which produces the Cadillac XT4 and Chevrolet Malibu -- could cease.
“Fairfax Team: As you are aware, the International UAW announced that Wentzville Assembly is on strike. Currently, the Wentzville Team is providing critical stampings to Fairfax. Due to the strike’s impact on Wentzville operations, we anticipate running out of parts for Fairfax as soon as early next week. The parts situation is fluid, and we are actively managing the situation," GM officials said in a message to workers.
“Since Fairfax won’t be able to run production due to a part shortage caused by the strike in Wentzville, there is no work available," GM continued. "We are working under an expired agreement at Fairfax. Unfortunately, there are no provisions that allow for company-provided SUB-pay in this circumstance.”
Stellantis said on Saturday it provided a counteroffer to the UAW, proposing raises of 20% over a four-and-a-half-year contract term, including an immediate 10% hike.
"(UAW President) Shawn Fain, the UAW said they were going to run very much a transparent negotiation, sharing the details of offers and so forth," Stewart said. "So likewise, we're doing the same."
The proposal is similar to ones offered by GM and Ford, which come out to an over 21% pay hike from now through 2027, but the offers are still well below the 40% wage hike the UAW is demanding.
Mark Stewart, the North American Chief Operating Officer for Stellantis, told reporters on Saturday that the UAW did not accept a proposal that would keep an assembly plant in Belvidere, Ill. in production.
"We were very specific that solution for Belvidere, which included job protection for the folks and some other items that we're not going into the detail with, but it was a very, very good proposal for how to resolve Belvidere," Stewart said. "It was only on the table until contract expiration. So, we were glad to continue to work. We want to have a solution, including that, but we need to all come together and be able to find a reasonable solution that both the company and the union can agree."
Fain criticized Stellantis' offer, stating that the company was only "playing games" and using Belvidere workers as a "bargaining chip."
"Belvidere Assembly was a profitable plant that just a few years ago supported around 5,000 workers and their families," he said. "Now that number is zero, and Stellantis wants to keep playing games. Their attitude is: Stellantis giveth, and Stellantis taketh away. Our attitude is: Save Belvidere.”
Specific details about the offer were not released by Stellantis, but Stewart added that the company's latest offer was "very compelling."
"This is not about greed," he said, "This is about sharing success."
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