Workers strike at all 3 Detroit automakers, a new tactic to squeeze companies for better pay

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Nearly one in 10 of America's unionized auto workers went on strike Friday to pressure Detroit's three automakers into raising wages in an era of big profits and as the industry begins a costly transition from gas guzzlers to electric vehicles.

Published Friday, September 15, 2023 3:09PM EDTDetroit

Union President Shawn Fain says workers could strike at more plants if the companies don't come up with better offers. The workers are seeking across-the-board wage increases of 36% over four years; the companies have countered by offering increases ranging from 17.5% to 20%. Now, roughly 13,000 of 146,000 workers at the three companies are on strike, making life complicated for automakers' operations, while limiting the drain on the union's $825 million strike fund.

The combative Fain narrowly won his post last spring with a fiery campaign against that culture, which he called “company-unionism,” which he said sold out workers by allowing plant closures and failing to extract more money from the automakers. Carlos Guajardo, who has worked at Ford for the past 35 years and was employed by GM for 11 years before that, said he likes the new strategy.

Even Fain has called the union's demands audacious, but he says the automakers are raking in billions and can afford them. He scoffs at company claims that costly settlements would force them to raise vehicle prices, saying labor accounts for only 4% to 5% of vehicle costs.

 

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