The United Auto Workers (UAW) union is expanding its strike to include some of America’s largest automakers, extending a dispute over wages and benefits into a third week.
Union boss Shawn Fain said an additional 7,000 workers at Ford and General Motors plants would be laid off.
The latest action, not aimed at Stellantis, reflects the new dynamic in those negotiations, he said.
About 18,000 workers went on strike in a dispute that darkened the US economy.
US President Joe Biden and former President Donald Trump, who is running for re-election, both visited the Detroit area this week to address the issue, which comes amid rising labor tensions across country. The union has begun negotiations to achieve a pay increase of about 40% over four years and end practices that give new recruits lower wages and fewer benefits, among other demands.
Companies say union demands will harm their ability to invest long-term. They responded with a salary increase of about 20% and a few other concessions.
On the picket line in Michigan this week, many workers said they were prepared for a long struggle.
“People are fed up. “We want a middle class,” said Emily Yettaw, who worked at GM for 17 years. “They make billions of dollars in profits and we deserve better.”
The union, which represents 146,000 workers at the three companies, has gradually increased pressure on the automakers to reach an agreement since the labor contract expired on September 14.
The latest action extends shutdowns for a Ford plant in Chicago that makes Explorers and a GM plant in Michigan that makes large crossover SUVs like the Chevrolet Traverse and Buick Enclave.
The alliance’s previous targets included 38 parts distribution facilities for dealers and three factories – one at each company.
Although limited, the standoff caused an estimated $1.6 billion (£1.3 billion) in economic losses in its first week, including losses of more than $100 million (£81 million) UK) in terms of income and wages – a cost that weighs heavily on the local economy. Jennifer Romero is the owner of Karma Coffee & Kitchen in Wayne, Michigan. His store, with leaflets advertising support for the strike, was located just down the street from a closed Ford plant. Jennifer said sales at her store have slowed significantly.
“Our neighborhood is predominantly blue-collar,” she said. “If they don’t work, they don’t spend money and if they don’t spend money, we don’t make money.”
For automakers, which face high investment costs and fierce competition as the industry ramps up production of electric cars, the timing of the conflict “couldn’t be worse,” said Dan Ives, Wall Street analyst, Wedbush Securities.
“The trajectory of the UAW incident was akin to witnessing a slow-moving automobile accident occurring on black ice,” he wrote in a memo Friday.
“This is a decisive moment for Detroit and the future of the auto industry, as we firmly believe that if GM, Ford and Stellantis agree to anything close to the proposed deal, the future looks bleak. protein for the US auto industry.”
Now, workers on the picket lines in the Detroit area this week say they remain committed to the fight, even though many will lose income by only receiving $500 (£410) in strike pay each month. week.
“It’s time for ramen and macaroni and cheese,” the GM employee in Ypsilanti joked. “No more red lobsters.”
“I don’t think anyone is scared here,” added Kemi Hooker, 53, who has worked for GM for 24 years. “We will do what is necessary.”