United Auto Workers have expanded strikes to GM and Stellantis parts distribution centers.
But the union is not extending walkouts to Ford-operated centers, citing the company’s greater willingness to meet their demands.
The negotiations between the union and the Detroit automakers continued on Saturday, September 23, with talks ongoing between the parties.
Read More: More UAW Strikes Threatened If Deal Not Struck
No immediate deal with Ford was announced.
Analysts said reaching a deal with Ford could pressurize GM and Stellantis to offer similar terms, potentially leading to a swift strike resolution.
Michael Duff, a professor at the Saint Louis University School of Law, said: “The moment you get a deal with Ford that includes much or all of what the U.A.W. is looking for, that puts a lot of pressure on GM and Stellantis.
“They are putting them in a position of having to argue why they’re different, why they can’t give anything more.”
These companies must then justify why they cannot provide comparable terms.
The economy would welcome a shorter strike, as the automotive industry employs around 200,000 people directly.
Read More: GM And Stellantis Slashed Over 2,000 Workers Because Of UAW Strike
Countless more jobs are indirectly dependent on car manufacturing.
Prolonged strikes could negatively affect consumer spending due to lost wages.
It could lead to inflation if vehicle availability or access to spare parts becomes challenging.
In such a scenario, the Federal Reserve may need to maintain high-interest rates to curb inflationary pressures.
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The UAW strike aligns with public opinion as workers advocate for wage raises that keep pace with inflation, especially as car makers report robust profits.
However, experts warn public support may wane if the strike continues, making car repairs difficult and harming the economy.
Read More: UAW Says Strikes Could Intensify If Talks Don’t Progress
GM and Stellantis workers at multiple parts distribution centers walked out in solidarity with the UAW strike, further intensifying pressure on these automakers.
Ford’s recent agreement with the union representing its Canadian workers may provide insights into the potential outcome in the US.
The deal, reached with Unifor, includes pay increases of up to 25 percent over three years, bonuses, and enhanced retirement benefits.
It also includes measures to protect employees during the shift to electric vehicle production.
Investors expect pay increases in the US of less than 30 percent, with both sides motivated to resolve the situation promptly.
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The UAW’s demands encompass a 40 percent wage increase over four years, improved retiree benefits, and reduced work hours.
The union also seeks to end the tiered wage system that starts new hires at substantially lower wages than the top UAW pay rate of $32 per hour.
Ford has agreed to some of these demands, including adjusting workers’ pay for inflation and increasing profit-sharing bonuses.
Furthermore, the company has granted workers the right to strike over plant closures.
It’s a significant concession given the industry’s transition to electric vehicles requiring less labor and parts.
