UAW Says No Strike Expansion, Warns of Future Action

Facts

• On Friday, United Auto Workers (UAW) Pres. Shawn Fain announced that the union wouldn't be broadening its strike action against Detroit's Big Three automakers — Ford, General Motors, and Stellantis — but that it's prepared to call on more workers to join the walkout at any time.¹
• This comes after the UAW escalated its four-week strike action on Wednesday evening, ordering 8.7K workers off the job at Ford's largest factory — the Kentucky Truck Plant — following a brief negotiation session with the automaker's officials.²
• Ford Motor Co., which proposed a 23% wage increase last week, failed to meet the union's demands for an improved economic package after talks centered on future workers at battery plants and retirement security.³
• The plant in Louisville, Ky., produces Super Duty pickup trucks as well as the Ford Expedition and Lincoln Navigator large SUVs, reportedly generating about $25B in revenue annually.⁴
• Ford executive Kumar Galhotra stated during a conference call on Thursday that the company had reached its limit on a UAW contract offer, adding that money can be reallocated in its current proposal, but going further would hurt Ford's ability to invest in the business.⁵
• The Kentucky walkout brings the number of auto workers on strike against the three automakers to 33.7K. Since the industrial action began on Sept. 15, roughly 5K workers have been furloughed or laid off.⁶

Sources: ¹CNN (a), ²CNN (b), ³Bloomberg, ⁴The Wall Street Journal, ⁵Reuters and ⁶CBS.

Narratives

• Left narrative, as provided by Labor Notes. Ford, which had previously claimed to have more to offer in the negotiations, presented a new counter-offer that was similar to previous packages. As a sign that auto workers were fed up with these empty promises, 8.7K employees justifiably walked out of the Ford plant in question.
• Right narrative, as provided by Daily Caller. The well-paid UAW leadership doesn't care about auto workers' interests. The union aims to create operational chaos to inflict the worst punishment possible on the Big Three, even if that means rejecting a record contract offer and requiring the rank and file to experience a considerable drop in pay or layoffs amid a nationwide inflation crisis.

Predictions