United Auto Employees members rally outside Stellantis’ Ram 1500 plant in Sterling Heights, Mich. after the union called a strike on the plant on Oct. 23, 2023.
Michael Wayland / CNBC
DETROIT — The United Auto Employees union is expanding its strike to a Stellantis plant in Michigan that produces Ram 1500 full-size pickup trucks, dealing one other blow to the Detroit automakers as negotiations drag on.
The brand new work stoppage includes roughly 6,800 employees at Stellantis’ Sterling Heights Assembly Plant in suburban Detroit, the union announced Monday after initiating the walkout.
“Currently, Stellantis has the worst proposal on the table regarding wage progression, temporary employee pay and conversion to full-time, cost-of-living adjustments (COLA), and more,” the UAW said in a release.
The walkout on the Sterling Heights plant brings the whole variety of UAW members on strike with the Detroit automakers to greater than 40,000. It marks the primary escalation in the union’s strike in nearly two weeks and the primary latest work stoppage at Stellantis in over a month.
“We have tried to do things the suitable way. We have taken our time, we have been patient with these corporations. It is time to amp up the pressure and SHAP just gave the impression of the the correct goal right now,” UAW President Shawn Fain said outside the plant on Monday, calling the power Stellantis’ “money-maker.”
Stellantis said Monday it was “outraged that the UAW has chosen to expand its strike motion against the corporate,” citing “a latest, improved offer” made by Stellantis on Thursday, which included 23% wage increases, a nearly 50% increase in company contributions to retirement plans and other enhanced advantages.
“Following multiple conversations that appeared to be productive, we left the bargaining table expecting a counter-proposal, but have been waiting for one ever since,” Stellantis said in an emailed statement. “Our very strong offer would address member demands and supply immediate financial gains for our employees. As an alternative, the UAW has decided to cause further harm to your entire automotive industry in addition to our local, state and national economies.”
United Auto Employees President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) lead a march outside Stellantis’ Ram 1500 plant in Sterling Heights, Michigan after the union called a strike on the plant on Oct. 23, 2023.
Michael Wayland / CNBC
The corporate said the strike “may have long-lasting consequences,” including lack of domestic market share to non-union competition, company profits and profit-sharing bonuses for UAW members.
Sterling Heights is one of the vital vital U.S. plants to Stellantis. Nonetheless, the automaker is best poised to wait out a piece stoppage on the truck plant than its crosstown rivals General Motors and Ford Motor, with a comparatively healthy supply of Ram pickups ready to go.
The corporate had a 114-day supply of the Ram 1500 pickup as of Oct. 17, according to Cox Automotive, compared with GM’s 100-day supply of the Chevrolet Silverado 1500, and Ford’s 99-day supply of the F-150. The industry average is roughly 62 days, according to Cox.
UAW Vice President Wealthy Boyer, who’s leading the Stellantis negotiations, told CNBC on Monday there’s been little movement by the corporate on key issues.
He said discussions in regards to the company potentially moving Ram 1500 production to Mexico in addition to the longer term of Belvidere Assembly in Illinois, which Stellantis indefinitely idled earlier this 12 months, remain unresolved.
“It was time. We have been sitting on the table long enough with not enough resolution,” Boyer said regarding the walkout on the Sterling Heights facility.
Randy Harvard (right), an autoworker of 29 years, stands with other United Auto Employees members after the union called a strike Oct. 23, 2023 at Stellantis’ Ram 1500 plant in Sterling Heights, Mich.
Michael Wayland / CNBC
The unannounced walkout is the newest example of what Fain called a “latest phase” of bargaining with the automakers in which the union would take a more aggressive tack. For several weeks for the reason that targeted strikes began, on Sept. 15, the UAW was pre-announcing strike locations, typically on Fridays.
But on Oct. 11 the union announced its first unexpected walkout at Ford’s Kentucky Truck Plant — liable for $25 billion in revenue annually — marking a significant escalation in the continued negotiations.
Fain on Friday said there was “more to be won” from the automakers.
LaShawn English, UAW regional director overseeing the Sterling Heights facility for Stellantis, believes the brand new strike should make the corporate “come to the table” with higher economics for employees.
“This can be a plant that is very profitable to the corporate,” English told CNBC. “I believe this one will make them open their eyes a bit.”
Employees reminiscent of Randy Harvard marched alongside Fain, Boyer and other union leaders following the walkout, with chants reminiscent of “No bucks, no trucks!”
“I’m with the president. Now we have to stick together,” said Harvard, an autoworker of 29 years. “It is a employees’ revolt. It isn’t just us now. Everybody’s on strike now — from the actors, all the way in which to the casino employees.”
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