avatarJohn Whye

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Coordinated Labor Strike Hits Big Three Auto Makers Simultaneously

Thousands of auto workers walk out in historic strike

Photo by Alexander Grey on Unsplash

In an unprecedented attempt to coordinate with each other against the power and might of the automakers, the UAW just went out on strike against all three of the major American automobile manufacturers, in a bold and desperate gamble, for the first time in its 88-year history.

This is the biggest auto strike in generations, a truly historic moment in America.

It will hit the American Midwest like a sledgehammer and affect the region’s economy in every way. American workers today are making lower wages today, in real pay, than they were 50 years ago.

Corporate profits are rising astronomically, with the big three CEOs making 400 times what their average worker makes.

They are making billions in profits and dividends in stock paybacks. The UAW wants a major redistribution of wealth and a fair contract.

It is a radical shift in negotiation approach from the United Auto Workers, (UAW) which has a new president, Shawn Fain. In previous strikes, the UAW would go after one or the other of the Big Three American automakers.

This time, the UAW is striking against Ford, General Motors, and Stellantis simultaneously. Workers are walking out in protest at the huge discrepancy between the wages they earn and the profits the CEOs of these powerful companies are pocketing.

There is a huge gap between what the workers want and what the three automakers are willing to pay.

1) The UAW is pointing to the fact that ever since COVID-19, car prices have risen by 30%. Why is that?

2) The union is asking for a 36–40% raise in hourly wages over four years so they can share in this financial bonanza.

3) The companies have countered with a top offer of 20%.

4) Fain stated “They could double our raises and not raise car prices and still make millions of dollars in profits. We’re not the problem, corporate greed is the problem.” Payroll costs are only 4%-5% of the automaker’s income.

5) Bernie Sanders (I-VT) at a Detroit rally said this is a prime example of what is wrong in America today. The Big 3 automakers made $21 billion in the first six months of this year alone, and $250 billion in profits in America over the last decade.

6) President Biden stated “I believe they should go further to ensure that record corporate profits mean record contracts for the UAW,” according to Jennifer Shutt in the Wisconsin Examiner.

This would be revolutionary in its impact and would hopefully lead to a major redistribution of wealth in the country. It would not only provide the average worker a living wage but also ramp up benefits like health insurance and medical coverage to provide a decent pay package.

1) Stellantis is the result of a merger between European and American car makers and owns Chrysler, Dodge, Jeep, and Ram. Executives say they are disappointed the UAW is refusing to reach a fair agreement in the” best interests of the employees. “

2) Stellantis said they would “put the company in contingency mode and take all the appropriate decisions to protect our North American operations and the company.”

3) Their proposal, in line with Ford and GM, offers workers nearly 21% over the course of the contract and an immediate 10% pay raise, according to CNBC.

4) All three automakers threatened layoffs of non-union workers to frighten union workers to settle for less than their demands.

5) They are planning to shut down or sell plants to intimidate workers.

6) They claimed they would be forced into bankruptcy if they accepted UAW demands

The UAW’s goal is to restore the American middle class, which has been shrinking steadily over the years. UPS already did it, and it would hopefully lead to a major redistribution of wealth for companies like Amazon and Starbucks to share the wealth more equitably.

This trend towards massive inequity in the CEOs making 400 times what their average workers make is what this is all about. All the workers want is a fair and livable wage and benefit package and restoration of their pensions.

This strike will be a landmark in labor relations in America, either way.

The rich don’t want to share, but they must. We are all connected…

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