Protesters from the United Auto Workers (UAW) union and its new president Shawn Fain on September 4, 2023 in Detroit, Michigan (GETTY IMAGES NORTH AMERICA/AFP/Archives/BILL PUGLIANO)
The Detroit auto show should be an opportunity to present new electric vehicles this week, but the 2023 edition risks being overshadowed by tense union negotiations that could even lead to a strike among major American manufacturers.
The opening to the public is planned for Saturday, after days reserved for the media and professionals during the week.
But this year, the show — which has become above all a platform for the products of the three big Michigan manufacturers, General Motors, Ford and Stellantis — is taking place in a difficult context.
The “Big Three” have been scrambling for several months with the United Auto Workers (UAW) union and its new president Shawn Fain to design new collective agreements before the Thursday deadline.
“Union negotiations are on everyone’s mind,” noted Alan Amici, president of the Center for Automotive Research, an American NGO. “There is a certain level of nervousness in the Detroit area.”
The two camps exchanged proposals and counter-proposals, with Shawn Fain very publicly expressing his dissatisfaction.
“If we arrive at 11:55 p.m. on Thursday without an agreement with any of the three major manufacturers, there will be a strike among the three manufacturers if necessary,” insisted Mr. Fain on Friday during a progress update.
According to him, employees deserve the same 40% salary increases granted to manufacturers’ bosses. But the latest proposals from the “Big Three” showed levels well below.
The groups also rebelled against the improvement of retirees’ health conditions and the restoration of the guarantee of retirement for all.
The union represents around 150,000 employees from the three groups, 97% of whom have agreed in principle to a strike.
The North American International Auto Show in Detroit was previously held in January but has changed seasons to 2022, shifting its focus to the general public.
The 2022 edition was marked by the absence of major foreign manufacturers who were accustomed to the January shows, such as Toyota and Volkswagen, and by fewer technological revelations. She nevertheless took advantage of the presence of American President Joe Biden.
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This year, the presentation Tuesday evening of a new version of the Ford F-150 pickup — the best-selling vehicle in the United States — is eagerly awaited. The next day, GM and Stellantis planned press presentations.
The union has not indicated at this point whether it plans to hold anything near the show. But he should make sure to be very visible as the deadline approaches on Thursday.
US President Joe Biden at the 2022 edition of the Detroit auto show (northern United States) (GETTY IMAGES NORTH AMERICA/AFP/Archives/BILL PUGLIANO)
Ford was the first to return to the UAW, offering an across-the-board wage increase of 9% over the four years of the collective agreement and the payment of a one-time bonus of 6%.
Mr. Fain’s reaction: this offer “represents an insult to the value” of employees. He then rejected the “insulting proposal” made by GM.
Stellantis unveiled its offer on Friday. The owner of Chrysler is ready to grant a 14.5% increase in wages, a one-time bonus of $6,000 the first year then $4,500 for each of the following three years.
“It’s an evolution,” Mr. Fain noted Friday evening. “We go from 9% at Ford to 14.5% at Stellantis. It’s because we’re putting pressure on,” said this former Stellantis electrician.
But this remains “deeply inadequate”, he criticized.
“It does not compensate for inflation. It does not compensate for decades of falling wages. And it does not reflect the very significant profits that we have generated for this company,” continued the unionist.
Given the persistent gulf between the two camps a few days before the deadline, many analysts foresee a work stoppage. A priori in a single group. The last one dates back to 2019, at GM, for six weeks.
Harry Katz, professor at the School of Industrial and Labor Relations at Cornell University, believes that the “acerbic” remarks of the president elected to head the union in March, combined with the short time remaining, accentuate the risk of a strike.
He points out, however, that Sean O’Brien, president of the UPS Teamsters union, lost his temper with management before signing an agreement on time.
A strike would particularly have an impact on suppliers which could lead to workforce reductions.
© 2023 AFP
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