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Historic Strike by the United Auto Workers Union
The United Auto Workers (UAW) union, has thrown down the gauntlet. By initiating a strike against all three major automakers at the drop of a hat. Isn't it surprising, that this is the first instance in history where such a collective action has been taken against the Big Three automakers?
Backdrop of the Strike
The UAW's decision to strike came after beating their heads against the wall in unsuccessful attempts to finalize a new contract by the stipulated deadline. However this strike doesn't put all their eggs in one basket. Only a handful of workers from three specific Midwest auto plants have currently joined the strike, representing a small fraction of the UAW's vast membership across the three companies.
Strategic Shift in UAW's Approach
In the past, the UAW would not put all their cards on the table and negotiate with one automaker at a time. This time around, they've changed their tune by negotiating with all three automakers simultaneously. This approach is like a cat and mouse game, designed to keep the companies on their toes.
UAW's Stance and Demands
Shawn Fain, the UAW President, has not been beating around the bush regarding the union's demands. He emphasizes that the automakers, rolling in the dough, should meet the union's requests. These include significant pay raises, restoration of pension and retiree healthcare, and adjustments for the cost of living. The union's demands also stem from the windfall profits the Big Three automakers have reaped during the pandemic.
Automakers' Perspective
The Big Three automakers, while not turning a blind eye, have shown some flexibility in their wage proposals. However, they feel the union is barking up the wrong tree with demands that don't account for years of wage stagnation. The automakers also have cold feet about the potential financial implications of meeting all of UAW's demands.
Broader Context
The UAW strike is just the tip of the iceberg in the U.S. labor movement, with several other unions either going on strike or flexing their muscles. The transition to electric vehicles in the auto industry is also a hot potato in the ongoing negotiations, as the UAW seeks protections for its members.
