UAW Spares Ford, But Expands Auto Strike Against GM, Stellantis Distributors

The United Auto Workers union on Friday announced additional labor strikes against 38 parts distribution centers operated by General Motors and Stellantis, taking its labor stoppages to a larger national scale that in one week has already cost the economy an estimated $1.6 billion.

"We will be everywhere from California to Massachusetts, from Oregon to Florida," UAW President Shawn Fain said.

The UAW first began striking against Ford Motor Co, GM and Stellantis last Friday after contract negotiations broke down before the current agreements expired. The latest strikes will take effect at 12:00 ET on Friday.

"We will shut down parts distribution until the companies come to their senses," Fain said.

The UAW will not be launching additional strikes against facilities operated by Ford because the automaker has agreed to a number of the union's demands, Fain said. Ford has agreed to reinstate the cost of living adjustment formula that was first suspended in 2009, grant autoworkers the right to strike over plant closures and provide income security for up to two years with health care to laid-off workers, according to the UAW.

The automaker has also agreed to immediately convert all temporary employees into full-time employees within 90 days of the ratification of a new contract.

"But, to be clear, we're not done at Ford," Fain added. Ford agreed with the union president, telling Reuters "[w]e have more work ahead us before we can reach an agreement."

In separate statements, Stellantis and GM condemned the UAW's decision to strike their parts distribution facilities.

GM called the strike escalation "unnecessary" and said it affects more than 3,000 workers, their families and their communities. The automaker added that the new strikes add validity to the idea that the "UAW is manipulating the barraging process for their own personal agendas," referencing text messages from the union's director of communications that were leaked Thursday night.

"[The UAW] seem[s] more concerned about pursuing their own political agendas than negotiating in the best interests of our employees and the sustainability of our U.S. operations given the market’s fierce competition," Stellantis said, also referencing the leaked text messages.

Rather than having all 146,000 members of the UAW employed by the Detroit Three strike simultaneously, the union's new "stand-up strike" has local chapters strike against local facilities. As the strikes progress, additional local chapters will be called to strike on a rolling basis, putting pressure on automakers to agree to the UAW's demands.

The strike plan has somewhat weakened the overall effect the strikes could have had on the economy; the strikes have cost the U.S. economy just $1.6 billion in losses after seven days, according to the Anderson Economic Group. The Michigan-based firm previously estimated that the economy would suffer a $5.6 billion loss after 10 days, should all of the UAW members go on strike.

Before the latest strikes were announced, just three facilities operated by the Detroit Three are under strike by around 12,700 autoworkers. Roughly 5,500 workers at Stellantis' Toledo assembly. About 4,100 autoworkers at GM's Wentzville, Mo., assembly plant, and final assembly and paint workers at Ford's Wayne, Mich., assembly plant are on the picket line. 

Ford's Wayne plant assembles its white-hot Bronco SUVs and Ranger midsize pickup trucks, while the Toledo plant makes Jeep Wrangler SUVs and Gladiator pickup trucks. GM's Wentzville plant focuses on making the GMC Canyon and Chevrolet Colorado pickups and the GMC Savana and Chevrolet Express full-size vans.

Over the last seven days, all three automakers have laid off some workers. Ford temporarily laid off 600 employees at its Wayne assembly plant, which makes its popular Bronco, while GM said furloughed some 2,000 workers at its Fairfax Assembly Plant in Kansas. Stellantis has temporarily laid off 68 workers at its machining plant in Perrysburg, Ohio, and may fire another 300 employees at two facilities in Kokomo, Indiana.

Earlier this week, 190 members of the UAW began striking at Mercedes-Benz supplier ZF's Tuscaloosa, Alabama, facility. Workers at ZF's plant make front axles for Mercedes-Benz' Vance, Alabama, plant that makes GLE, GLE coupé and GLS model SUVs, including the Mercedes-Maybach GLS.

Updated at 2:40 p.m. ET to include statements from General Motors and Stellantis.