By the union’s tally, only about 12,700 Big Three employees are on strike at the moment. That’s a far smaller number of workers than the union’s total 145,000 members at Ford, GM and Stellantis, the maker of the Chrysler, Dodge, Ram and Jeep brands.
Having fewer members walking out could help the union preserve its resources for a prolonged strike. With fewer people on strike, the union would need to pay out less money from its $825 million strike fund – stretching the money for longer.
The union has made clear, though, that it could call on more workers to strike if negotiations don’t progress. Starting with a smaller number of striking workers also gives the union room to ramp up as a bargaining tactic.
5 min ago
UAW president on Ford's bankruptcy threat: "It's a joke"
From CNN's Chris Isidore
United Auto Workers President Shawn Fain speaks during an interview on September 15. CNN
United Auto Workers union President Shawn Fain dismissed Ford CEO Jim Farley's claim that Ford would go bankrupt if it met all of the union's contract, saying, "It's a joke."
"The cost of labor for a vehicle is 5% of the vehicle," he told CNN while on a picket line outside Ford's Michigan Truck plant in Warren Michigan. "They could double our wages and not raise the prices of vehicles, and they would still make billions of dollars. It's a lie like everything else that comes out of their mouths."
Ford CEO Jim Farley told CNN earlier in the day that the company couldn't afford all of the union's demands, including a 40% pay raise and a 32-hour, four-day work week. Company officials had told reporters earlier in the day that the $30 billion in operating profits the company made from 2019 through 2022 would have swung to a $14.4 billion loss had it be operating under terms of the UAW's contract demands.
"Forty percent will put us out of business," Farley said. "We would lose $15 billion. We would have to cut people, close plants. What's the good of that? It's not a sustainable business."
Ford had offered the UAW a 20% pay raise over the life of the contract, including an immediate 10% hike. But it wasn't enough to prevent a strike.
Fain said earlier Thursday evening that "we are committed to winning an agreement with the 'Big Three' that reflects the incredible sacrifice and contributions UAW members have made to these companies."
12 min ago
Rep. Tlaib tells CNN her constituents are worried about a strike
From CNN's Jeanne Sahadi
Rashida Tlaib enters the U.S. Capitol, in Washington, D.C., on July 25. Graeme Sloan/Sipa/AP/File
Michigan Rep. Rashida Tlaib, whose father worked for Ford and was a UAW member, told CNN’s Kaitlan Collins on “The Source” Thursday that she hopes a deal can be reached with the three big auto companies because people are anxious about it.
“They know what’s at stake,” the Democrat said. “So many of our UAW neighbors throughout my district constantly tell me how they’re struggling. That they’re living check by check. They should be able to take care of their families, like my father did.”
“They’re willing to use one of the most powerful tools we have in our country to fight against corporate greed. Which is the right to strike.”
24 min ago
Union workers walk out
United Auto Workers members walked off the job and joined picket lines at midnight Friday morning.
UAW social media accounts posted and reposted videos of workers walking out of plants to cheers from sign-waving union members. Picket lines were forming, a sign not only of the targeted strikes taking shape but also the possibility of wider strikes that the union has already hinted at.
35 min ago
GM responds to UAW strike
From CNN's Luciana Lopez
GM responded shortly after midnight, when the UAW officially went on strike.
“The UAW has informed GM that they are on strike at Wentzville Assembly in Missouri as of 11:59 PM," the company said in a statement.
"We are disappointed by the UAW leadership's actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible for the benefit of our team members, customers, suppliers and communities across the U.S. In the meantime, our priority is the safety of our workforce," the statement concluded.
33 min ago
Which locals are on strike?
From CNN's Luciana Lopez
The UAW on Thursday sent information to its members about which local units would be on strike.
GM Wentzville Assembly
Approx. 3,600 members
Product: Chevrolet Colorado, Express; GMC Canyon, Savanna
Stellantis Toledo Assembly Complex
Approx. 5,800 members
Product: Jeep Wrangler, Gladiator
Ford Michigan Assembly Plant – Final Assembly and Paint
Approx. 3,300 members
Product: Ford Ranger, Bronco
NOTE: This is not the entire Michigan Assembly Plant facility, BSU/ISA (colloquially called "Stamping") is not on strike
22 min ago
Ford said it may have to furlough members not technically on strike
Ford CEO Jim Farley speaks to reporters about the UAW contract talks at the North American International Auto Show in Detroit on September 13. Paul Sancy/AP
It’s possible that the Big Three automakers will shut down operations and lay off members who are not technically on strike.
Ford CEO Jim Farley said on CNN on Thursday that striking plants that make critical parts could affect workers at downstream assembly plants.
"We can't make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed," Farley said.
Strikers are not eligible for unemployment benefits, but workers who are on temporary layoff can receive the benefits, which differ depending on the state where they work but would be less than the union's $500 strike pay. There also are legal questions in different states about qualifying for unemployment.
A union spokesman said earlier Thursday that he couldn’t comment on members’ eligibility for unemployment benefits if they were laid off due to plants shutting down from lack of parts caused by the strike.
22 min ago
A prolonged strike could have a significant economic impact
From CNN's Matt Egan and Samantha Delouya
A strike against the automakers could have big economic effects.
According to Anderson Economic Group, a 10-day strike against General Motors, Ford and Stellantis would cost the USeconomy $5 billion.
Goldman Sachs estimated the strike would cut overall quarterly annualized growth by 0.05 to 0.1 percentage points for each week the strike lasts.
22 min ago
When was the last time UAW members went on strike?
From CNN's Chris Isidore and Ramishah Maruf
United Auto Workers union members and their families picket at the General Motors Flint Assembly plant on October 13, 2019, in Flint, Michigan. Bill Pugliano/Getty Images
UAW went on strike against General Motors in September 2019, when the union’s nearly 50,000 hourly full-time and temporary workers walked out at 31 GM factories and 21 other facilities across nine states. The union and company negotiators reached a labor contract in October 2019 after a nearly six-week strike.
The United Auto Workers union is on strike against General Motors, Ford and Stellantis, the first time in its history that it has struck all three of America's unionized automakers at the same time.
The strike came after the union made ambitious demands in wages, benefits and job protections for its members. With all three automakers reporting record or near-record profits, the union was trying to recapture many benefits they had been forced to give up more than a decade ago when the companies were cash starved and on the brink of bankruptcy.
The last autoworkers strike was in 2019 when UAW workers struck General Motors for six weeks. Chrysler, as Stellantis was known, was struck for less than one day in 2007, and Ford was last struck in 1978.
By the union’s tally, only about 12,700 Big Three employees are on strike at the moment. That’s a far smaller number of workers than the union’s total 145,000 members at Ford, GM and Stellantis, the maker of the Chrysler, Dodge, Ram and Jeep brands.
Having fewer members walking out could help the union preserve its resources for a prolonged strike. With fewer people on strike, the union would need to pay out less money from its $825 million strike fund – stretching the money for longer.
The union has made clear, though, that it could call on more workers to strike if negotiations don’t progress. Starting with a smaller number of striking workers also gives the union room to ramp up as a bargaining tactic.
United Auto Workers President Shawn Fain speaks during an interview on September 15. CNN
United Auto Workers union President Shawn Fain dismissed Ford CEO Jim Farley's claim that Ford would go bankrupt if it met all of the union's contract, saying, "It's a joke."
"The cost of labor for a vehicle is 5% of the vehicle," he told CNN while on a picket line outside Ford's Michigan Truck plant in Warren Michigan. "They could double our wages and not raise the prices of vehicles, and they would still make billions of dollars. It's a lie like everything else that comes out of their mouths."
Ford CEO Jim Farley told CNN earlier in the day that the company couldn't afford all of the union's demands, including a 40% pay raise and a 32-hour, four-day work week. Company officials had told reporters earlier in the day that the $30 billion in operating profits the company made from 2019 through 2022 would have swung to a $14.4 billion loss had it be operating under terms of the UAW's contract demands.
"Forty percent will put us out of business," Farley said. "We would lose $15 billion. We would have to cut people, close plants. What's the good of that? It's not a sustainable business."
Ford had offered the UAW a 20% pay raise over the life of the contract, including an immediate 10% hike. But it wasn't enough to prevent a strike.
Fain said earlier Thursday evening that "we are committed to winning an agreement with the 'Big Three' that reflects the incredible sacrifice and contributions UAW members have made to these companies."
Rashida Tlaib enters the U.S. Capitol, in Washington, D.C., on July 25. Graeme Sloan/Sipa/AP/File
Michigan Rep. Rashida Tlaib, whose father worked for Ford and was a UAW member, told CNN’s Kaitlan Collins on “The Source” Thursday that she hopes a deal can be reached with the three big auto companies because people are anxious about it.
“They know what’s at stake,” the Democrat said. “So many of our UAW neighbors throughout my district constantly tell me how they’re struggling. That they’re living check by check. They should be able to take care of their families, like my father did.”
“They’re willing to use one of the most powerful tools we have in our country to fight against corporate greed. Which is the right to strike.”
United Auto Workers members walked off the job and joined picket lines at midnight Friday morning.
UAW social media accounts posted and reposted videos of workers walking out of plants to cheers from sign-waving union members. Picket lines were forming, a sign not only of the targeted strikes taking shape but also the possibility of wider strikes that the union has already hinted at.
GM responded shortly after midnight, when the UAW officially went on strike.
“The UAW has informed GM that they are on strike at Wentzville Assembly in Missouri as of 11:59 PM," the company said in a statement.
"We are disappointed by the UAW leadership's actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible for the benefit of our team members, customers, suppliers and communities across the U.S. In the meantime, our priority is the safety of our workforce," the statement concluded.
The UAW on Thursday sent information to its members about which local units would be on strike.
GM Wentzville Assembly
Approx. 3,600 members
Product: Chevrolet Colorado, Express; GMC Canyon, Savanna
Stellantis Toledo Assembly Complex
Approx. 5,800 members
Product: Jeep Wrangler, Gladiator
Ford Michigan Assembly Plant – Final Assembly and Paint
Approx. 3,300 members
Product: Ford Ranger, Bronco
NOTE: This is not the entire Michigan Assembly Plant facility, BSU/ISA (colloquially called "Stamping") is not on strike
Ford CEO Jim Farley speaks to reporters about the UAW contract talks at the North American International Auto Show in Detroit on September 13. Paul Sancy/AP
It’s possible that the Big Three automakers will shut down operations and lay off members who are not technically on strike.
Ford CEO Jim Farley said on CNN on Thursday that striking plants that make critical parts could affect workers at downstream assembly plants.
"We can't make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed," Farley said.
Strikers are not eligible for unemployment benefits, but workers who are on temporary layoff can receive the benefits, which differ depending on the state where they work but would be less than the union's $500 strike pay. There also are legal questions in different states about qualifying for unemployment.
A union spokesman said earlier Thursday that he couldn’t comment on members’ eligibility for unemployment benefits if they were laid off due to plants shutting down from lack of parts caused by the strike.
A strike against the automakers could have big economic effects.
According to Anderson Economic Group, a 10-day strike against General Motors, Ford and Stellantis would cost the USeconomy $5 billion.
Goldman Sachs estimated the strike would cut overall quarterly annualized growth by 0.05 to 0.1 percentage points for each week the strike lasts.
United Auto Workers union members and their families picket at the General Motors Flint Assembly plant on October 13, 2019, in Flint, Michigan. Bill Pugliano/Getty Images
UAW went on strike against General Motors in September 2019, when the union’s nearly 50,000 hourly full-time and temporary workers walked out at 31 GM factories and 21 other facilities across nine states. The union and company negotiators reached a labor contract in October 2019 after a nearly six-week strike.
