UAW strikes against Detroit automakers will occur without contracts

The United Auto Workers union will strike against Detroit automakers if the sides fail to reach a collective bargaining agreement by Thursday’s 11:59 p.m. ET deadline, UAW President Shawn Fain said Wednesday on CNBC’s “Squawk Box.” .

Fain’s comments came the morning after he outlined plans to local union leaders Carrying out targeted attacks on specific ones General MotorsFord engine and Stellantis Attachments if no agreement is reached by Thursday.

“As it stands now, it’s very likely that all three will be cut unless we get a deal by midnight on September 14th,” Fain told CNBC’s Phil LeBeau on Wednesday when asked whether that is the case ford is the lower probability of being hit. “All three are expected to deliver for their workers and if they fail to do so, action will be taken.”

Targeted strikes refer to work stoppages only at specific plants related to local contract issues that occur in many, if not most, plants. This is different from nationwide strikes in which all union members walk out of plants, as was the case four years ago during the last round of negotiations with GM.

Fain said the UAW and automakers have “a lot of work” to do, but he believes the sides can reach deals before the deadline.

“We can get there, but companies have to get serious and put in the effort,” he said.

Fain said Wednesday the union continues to seek double-digit wage increases. Most recently, the UAW requested a 36% increase – a decrease from its original request of 40%. The union’s raise proposals to automakers have not fallen below 30%, he said.

The union’s key demands included a 40% increase in hourly wages, a shortening of the 32-hour week, a return to traditional pensions, the elimination of pay scales and the reintroduction of cost of living adjustments, among others.

Ford CEO Jim Farley said late Tuesday evening that the company remained “optimistic that we can reach an agreement with the UAW in the next two days.”

However, he said Ford’s willingness to offer was limited.

Farley said the company’s latest offer includes “salary increases, elimination of pay grades, inflation protection, five weeks of vacation and 17 paid vacation days.” [and] higher contributions for retirement.”

“We made an offer today that is our most generous offer in 80 years of UAW and Ford,” Farley said during the unveiling of the 2024 Ford F-150 in Detroit. “It’s a significant improvement, we’re still optimistic we’ll get a deal. But there is a limit because we have to secure for the future, future investments and the profitability of the company finance this.”

Farley said Ford “will not support” a four-day week.