26.4 C
Accra
Monday, January 20, 2025
WorldUS motor industry giants see massive protest from workers

Date:

US motor industry giants see massive protest from workers

Three of the biggest carmakers in the United States have witnessed over 10,000 of their staff embark on a protest.

General Motors (GM), Ford and Stellantis have seen no work at three of their plants as a result.

The strike is said to be the result of the expiration of labour contract, which happened last Thursday night.

Reports from the United Autoworkers Union (UAW) indicate that the firms have not proposed any acceptable offers.

The UAW’s president Shawn Fain told the BBC it was now up to the companies to resolve the dispute.

“When they start taking care of their workers it will end,” he said.

The strike commenced at midnight Eastern Time (04:00 GMT) at several crucial automotive plants: GM’s Wentzville, Missouri mid-size truck plant, Ford’s Bronco plant in Michigan, and the Jeep plant in Toledo, Ohio, which is owned by Stellantis.

These facilities play a pivotal role in the production of some of the most lucrative vehicles for the “Detroit Three” automakers.

While the strike initially targeted these three plants, the UAW did not rule out the possibility of expanding the strikes to additional locations.

As the deadline approached on Thursday, the White House announced that President Joe Biden had engaged in a phone conversation with Mr. Fain regarding the ongoing negotiations but did not provide specific details.

The union had put forth several demands, including a 40% pay increase over four years for its approximately 140,000 members, citing comparable raises for company executives. Additional demands included implementing a four-day workweek, reinstating automatic pay increases linked to inflation, and imposing stricter limits on the duration that workers can be classified as “temporary” employees without receiving union benefits.

Ford expressed concerns that the UAW’s proposals would more than double its labor costs in the United States.

Last month, an overwhelming 97% of the union’s members voted in favor of authorizing a strike. Workers argued that, given the companies’ years of record profits, they could afford to be more generous in addressing their demands.

“In my opinion we are owed this,” said Paul Raczka, who works in a Stellantis factory in Michigan making Jeep Grand Cherokees.

As the fourth generation in his family to work in the industry, Mr. Raczka noted that these jobs had offered his parents an excellent quality of life, complete with robust healthcare and reliable pensions. However, he expressed that this once-enviable way of life no longer seems attainable in the present day.

At 31 years old, Mr. Raczka stated that he couldn’t even afford to purchase the very car he helps to manufacture.

“We are still sitting on the backburner while these CEOs are making, you know, upwards of $20m a year,” he said.

Jim Farley, chief executive of Ford, told reporters earlier this week that he hoped to avoid a strike but there was a limit to what the company was willing to concede.

“We have to protect the sustainability of the company,” he said.

A 10-day strike could cost the three firms nearly $1bn (£800m) and workers almost $900m in lost wages, according to estimates by the Anderson Economic Group. It said the total hit to the economy could amount to more than $5bn.

Tyler Theile, vice-president at the firm, said a stoppage would have to be “pretty lengthy to move the needle on national economic indicators.”

As the strike commences, the automobile industry’s car supply, which has been strained since the onset of the pandemic due to parts shortages, remains well below historical levels. Analysts have suggested that an extended strike could result in higher prices for car buyers.

Collectively, Ford, GM, and Stellantis represent approximately 40% of car sales in the United States, although their market share has declined significantly over the past quarter-century, with foreign companies like Toyota gaining ground.

The most recent strike in the automotive industry occurred in 2019 when GM workers staged a six-week walkout.

Jessie Kelly, a GM worker who participated in that strike, revealed that she had been saving up in anticipation of another labor stoppage. While UAW participants are set to receive $500 in weekly strike benefits from the union, she noted that this would still be considerably less than her regular wages.

“My strike bills will not cover my mortgage, let alone the grocery bills, let alone the lights and the everything else. So it is gonna definitely be a struggle,” she said.

Ms Kelly, who lives near Detroit, said she supported the fight, despite the costs, noting that her pay has not kept pace with rising prices and is quickly eaten up by childcare and housing expenses. The 33-year-old said she had just two weeks of holiday a year, which she was typically forced to use for emergencies.

“At the end of the day, we all want to work for a corporation that is making good money. We just want our fair share of that,” she said.

“The CEOs are gonna keep paying themselves more and more money and we’re the only ones being left behind.”

[forminator_poll id="710479"]

Latest stories

We are not mutual friends, you are my “big sister” – Code Micky tells Delay

Popular Ghanaian musician and entertainment personality, Code Micky, has...

AngloGold Ashanti schools closed over violent clashes in Obuasi

The administration of AngloGold Ashanti Schools has decided to...

Mahama’s inauguration marked Akufo-Addo’s farewell – Bullgod

Ghanaian artiste manager, Lawrence Nana Asiamah Hanson, popularly known...

Bullgod calls for investigation into statue erection for Akufo-Addo

Ghanaian artiste manager, Lawrence Nana Asiamah Hanson, popularly known...

“I resigned from NIA in 2024, withdraw termination letter” – Ken Attafuah to Presidency

Former Executive Secretary of the National Identification Authority (NIA),...

Tracey Boakye stuns at private birthday dinner organized by her husband

Ghanaian actor Frank Badu Ntiamoah surprised his celebrity wife,...

Kofi Adomaa was shot in December – Report

Fresh information from undisclosed sources has revealed that what...

Related stories

WhatsApp to stop working on these devices in 2025

WhatsApp will soon cease supporting 18 Android models and...

South Korea: Deadly plane crash at Muan Airport claims 179 lives

A devastating tragedy has unfolded as at least 179...

Biden grants full pardon to son Hunter amid criminal sentencing

US President Joe Biden has granted a full and...

Court issues 2-year suspended death sentence to former Bank of China Chair for bribery, others

Former Bank of China chairman Liu Liange on Tuesday received...

Ghanaians among UN peacekeepers injured in Southern Lebanon attacks

The UN peacekeeping force in southern Lebanon has reported...

Russia denies Trump told Putin to restrain Ukraine war efforts

The Kremlin has rejected media reports suggesting that US...

More than 100 detained as protesters defy Amsterdam’s ban on protests

Dozens of pro-Palestinian protesters were arrested in Amsterdam on...