Explainer: Auto industry on tenterhooks ahead of potential UAW strike against 'Detroit Three'

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The United Auto Workers (UAW) union expects to go on strike against the Detroit Three automakers later this week if no agreement is reached over new contracts, setting the stage for one of the largest worker actions this year.

The potential strikes come as Detroit automakers, like their global counterparts, have been focused on cost reductions, which in some cases include job cuts, to help accelerate a shift from gasoline-powered vehicles to electric vehicles .The UAW kicked off negotiations with GM, Ford and Stellantis in July, but is yet to agree on a deal.

The UAW has historically picked one of the Detroit Three to negotiate with first as the so-called target that sets the pattern on which subsequent deals are based. Fain has said repeatedly the union will push to restore pay improvements tied to the cost of living and retiree benefits cut during the 2008-2009 economic crisis.

EVs require fewer parts to build and industry officials have said that will result in a need for fewer workers. Fain has said there should be no jobs lost because of the EV shift.The Detroit Three want to close the cost gap they have with foreign automakers with non-unionized U.S. factories.

 

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