Auto workers still have room to expand their strike against car makers. But they also face risks

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Even after escalating its strike against Detroit automakers on Friday, the United Auto Workers union still has plenty of leverage in its effort to force the companies to agree to significant increases in pay and benefits.

Only about 12 per cent of the union's membership is so far taking part in the walkout. The UAW could, if it chose to, vastly expand the number of strikers who could hit assembly plants and parts facilities of General Motors, Ford and Stellantis, the owner of the Jeep and Ram brands.

"We believe the next step for UAW is the more nuclear option -- going for a much more widespread strike on the core plants in and around Detroit," said Daniel Ives, an analyst with Wedbush Securities. "That was would be a torpedo." Striking the parts centres is designed to turn up pressure on the companies by hurting dealers who service vehicles made by GM and Stellantis, the successor to Fiat Chrysler. Service shops are a profit centre for dealers, so the strategy could prove effective. Millions of motorists depend on those shops to maintain and repair their cars and trucks.

On a picket line Friday, Fain was asked whether striking against the spare-parts centres would hurt -- and potentially alienate -- consumers. To make up for the loss of striking workers, the companies are weighing their options, including staffing the parts warehouses with salaried workers.

 

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