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Auto workers expand their strike to 38 locations in 20 states. Biden plans visit to show support

Auto workers expand their strike to 38 locations in 20 states. Biden plans visit to show support
April Zak's Morning Ritual hasn't changed but providing for her three boys getting down to the bare minimum here just got much more difficult. I have to check my bank account every day. This third generation Jeep worker and single mom typically makes about 19 bucks an hour working an overnight shift at the statis factory. Hopefully we get back to work. But with her plant now on strike, April has to figure out *** way to live on her union provided strike pay just $500 *** week, roughly half she says of what she's used to. It's not much when you have three kids. Oh, definitely not. No, you're really tightening the belt right now. Yeah. Yes. Every dollar, every cent is accounted for whether it goes for food, electric, gas rent. It's ketchup and hot dogs. Instead of having ketchup, hot dogs and apple sauce. You know, it's just like, it's like one less thing on the plate. 5800 Toledo auto workers are striking and many face *** similar financial strain. I'll be out there as long as I need to, it's already squeezing neighborhood businesses like Zinger's Bar and grill located near the plant, factory workers typically drop in for lunch or after their shifts. How much is business down? It's down probably about *** good, like 65 to 70%. Violet Wagner has been *** bartender here for more than 30 years. I'm just praying that they come to some type of agreement and that it gets better because if not, I mean, I may have to look for other employment as well beyond these picketers, Toledo is home to *** network of auto suppliers that are starting to feel the impact of the strike with thousands already losing work. Local government officials estimate *** month long strike could cost the Toledo area economy about 36 to $50 million. This is Toledo, it's *** union town. We have *** great history of supporting our workforce. County commissioner Pete Gurkin shows his solidarity, having worked at this factory for 30 years when these workers voted to go out, they knew that they knew that this was not *** naive audience and they are clever enough and resourceful enough. The local union is now building *** food pantry, piling up donations for any struggling workers. I signed up for some like Erica Mitchell feel the need to line up temporary jobs in case the strike drags. I still want to find something else to do while my kids are at school to make *** couple extra dollars to cover. You know, just surprises with kids. You never know what can happen. And when I got in the jeep, it was like, yes, finally like my dad did it, my grandpa did it. Now I can finally give my kids the same opportunity. Like many of these workers, April says she's prepared to weather this short term pain. Hopeful an agreement can be reached soon. It's only temporary. We're going to get back to work. I try to keep that positive mindset as much as I can.
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Updated: 4:47 PM CDT Sep 22, 2023
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Auto workers expand their strike to 38 locations in 20 states. Biden plans visit to show support
AP logo
Updated: 4:47 PM CDT Sep 22, 2023
Editorial Standards 鈸�
The United Auto Workers union expanded its strike against major carmakers Friday, walking out of 38 parts-distribution centers operated by General Motors and Jeep and Ram owner Stellantis in 20 states but sparing Ford from further shutdowns.President Joe Biden said on X, formerly known as Twitter, that he will visit Michigan on Tuesday 鈥渢o join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create.鈥滷ord avoided additional strikes because the company has met some of the union鈥檚 demands during negotiations over the past week, UAW President Shawn Fain said during an online presentation to union members.鈥淲e鈥檝e made some real progress at Ford,鈥� Fain said. 鈥淲e still have serious issues to work through, but we do want to recognize that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it鈥檚 a different story."Fain said GM and Stellantis, the successor to Fiat Chrysler, have rejected the union鈥檚 proposals for cost-of-living increases, profit sharing and job security, and 鈥渁re going to need some serious pushing.鈥滸M said it has presented five 鈥渉istoric鈥� offers covering wages and job security.鈥淭oday鈥檚 strike escalation by the UAW鈥檚 top leadership is unnecessary,鈥� the company said in a statement. 鈥淭he UAW leadership is manipulating the bargaining process for their own personal agendas.鈥漋ideo below: Nearly 200 UAW union members go on strike in Tuscaloosa, AlabamaStellantis said it made 鈥渁 very competitive offer鈥� Thursday that would pay all current full-time hourly employees between $80,000 and $96,000 within four years and seven months and allow 鈥渨orkforce stability鈥� during that time. The company said the UAW has not responded.Instead of targeting more production plants Friday, the UAW went after centers that distribute parts to car dealer service departments. That could quickly drag consumers into the middle of the fight if dealers run short of parts.The UAW said the new walkouts will affect 5,600 workers on top of the nearly 13,000 who began strikes last week at three Ford, GM and Stellantis assembly plants. Those original strikes will continue, the union said.The UAW is continuing to avoid targeting plants that make Detroit鈥檚 bestsellers, such as the Ford F-150 and Stellantis鈥� Ram pickups, which represent outsize shares of the companies鈥� revenue and profit. That represents a union strategy to gradually increase the pain of a strike on the automakers. However, the industry鈥檚 supply chain is so integrated that even hitting lower-profile plants cuts into production.Deutsche Bank analysts estimated Friday that GM, Ford and Stellantis have lost production of more than 16,000 vehicles since the strike started last week at a Ford assembly plant near Detroit, a GM factory in Wentzville, Missouri, and a Jeep plant run by Stellantis in Toledo, Ohio. Anderson Economic Group, a consulting firm in Michigan that tracks the industry, estimated Friday that the three big automakers have suffered economic losses of more than $1.6 billion.The carmakers and some of their suppliers have laid off about 6,000 workers in moves they say are related to the strike. GM shut down a factory in Kansas that relies on parts stamped at the Wentzville plant.Still, the impact is not yet being felt on car lots around the country 鈥� it will probably take a few weeks before the strike causes a significant shortage of new vehicles, according to analysts. Prices could rise sooner, however, if the prospect of a prolonged strike triggers panic buying.In bargaining, the union is pointing to the carmakers' huge recent profits and high CEO pay as it seeks wage increases of about 36% over four years. The companies have offered a little over half that amount.鈥淲e aren鈥檛 getting paid what we are supposed to. I feel like our CEO is getting all our money,鈥� said Antione Turner, who walked off his job Friday at a GM customer-care center in Belleville, Michigan.Turner said after working there 10 years, he makes $31 an hour. On the same picket line, Shelton Matthews, who started at GM three years ago, makes $20 an hour because the company鈥檚 tiered wage structure mean lower pay for new workers.鈥淧ay disparity is the key issue" in the strike, Matthews said. 鈥淵ou鈥檙e doing, if not harder work, the same work as the person next to you with significantly less pay.鈥漈he companies say they can鈥檛 afford to meet the union鈥檚 demands because they need to invest profits in a costly transition from gas-powered cars to electric vehicles. They have dismissed out of hand some of the demands, including 40 hours' pay for a 32-hour work week.Fain said that Ford has agreed to some union proposals, including the restoration of cost-of-living wage increases that were dropped several years ago, better profit-sharing and improved job security.A Ford spokesman, Daniel Barbossa, said the company 鈥渋s working diligently with the UAW to reach a deal that rewards our workforce and enables Ford to invest in a vibrant and growing future."鈥淎lthough we are making progress in some areas, we still have significant gaps to close on the key economic issues,鈥� he said.Rather than bargain with one company and set a pattern for contracts at the other two, the UAW has been negotiating simultaneously with all three Detroit giants. By favoring Ford after a week of talks, the UAW moved closer to its traditional bargaining pattern: getting the best deal it can from one company, then expecting the others to match it.Fain had promised all week to escalate the strike if there wasn't significant progress in negotiations. Targeting the parts-distributions centers could inflict quick pain on GM and Stellantis, said Daniel Ives, an analyst with Wedbush Securities.鈥淭he UAW is going for the gut punch as this strike gets a lot nastier,鈥� Ives said. He called it 鈥渁 very strategic and risky poker move by the UAW.鈥漁ther industry observers said that dragging current owners of GM and Stellantis vehicles into the fray will backfire on the union.鈥淧eople who have a car that they need to repair will not be sympathetic to the UAW when they can't get the car fixed and can't get to work,鈥� said Eric Gordon, a business professor at the University of Michigan.Even with Friday's expansion, the strikes involve only a little over 10% of the UAW's 146,000 members. That will make the union's $825 million strike fund last longer, as most members will keep working under the expired contract and pay into the fund. However, the longer the strike lasts, the greater the risk of dissension between workers who will keep collecting full paychecks and those getting $500 a week from the union.Fain believes that most of the public is on the union's side. He invited anyone who supports the union 鈥� 鈥渁ll the way up to the president of the United States鈥� 鈥� to join strikers on the picket lines.Fain had previously seemed lukewarm at best about a Biden visit, saying that the strike was the union鈥檚 fight, not the president鈥檚.Biden's visit Tuesday would come one day before the leading contender for the Republican nomination, former President Donald Trump, plans to speak to union members in Detroit.___Associated Press journalists Christopher Megerian and Corey Williams contributed to this report.

The United Auto Workers union expanded its strike against major carmakers Friday, walking out of 38 parts-distribution centers operated by General Motors and Jeep and Ram owner Stellantis in 20 states but sparing Ford from further shutdowns.

, formerly known as Twitter, that he will visit Michigan on Tuesday 鈥渢o join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create.鈥�

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Ford avoided additional strikes because the company has met some of the union鈥檚 demands during negotiations over the past week, UAW President Shawn Fain said during an online presentation to union members.

鈥淲e鈥檝e made some real progress at Ford,鈥� Fain said. 鈥淲e still have serious issues to work through, but we do want to recognize that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it鈥檚 a different story."

Fain said GM and Stellantis, the successor to Fiat Chrysler, have rejected the union鈥檚 proposals for cost-of-living increases, profit sharing and job security, and 鈥渁re going to need some serious pushing.鈥�

GM said it has presented five 鈥渉istoric鈥� offers covering wages and job security.

鈥淭oday鈥檚 strike escalation by the UAW鈥檚 top leadership is unnecessary,鈥� the company said in a statement. 鈥淭he UAW leadership is manipulating the bargaining process for their own personal agendas.鈥�

Video below: Nearly 200 UAW union members go on strike in Tuscaloosa, Alabama

Stellantis said it made 鈥渁 very competitive offer鈥� Thursday that would pay all current full-time hourly employees between $80,000 and $96,000 within four years and seven months and allow 鈥渨orkforce stability鈥� during that time. The company said the UAW has not responded.

Instead of targeting more production plants Friday, the UAW went after centers that distribute parts to car dealer service departments. That could quickly drag consumers into the middle of the fight if dealers run short of parts.

The UAW said the new walkouts will affect 5,600 workers on top of the nearly 13,000 who began strikes last week at three Ford, GM and Stellantis assembly plants. Those original strikes will continue, the union said.

The UAW is continuing to avoid targeting plants that make Detroit鈥檚 bestsellers, such as the Ford F-150 and Stellantis鈥� Ram pickups, which represent outsize shares of the companies鈥� revenue and profit. That represents a union strategy to gradually increase the pain of a strike on the automakers. However, the industry鈥檚 supply chain is so integrated that even hitting lower-profile plants cuts into production.

Deutsche Bank analysts estimated Friday that GM, Ford and Stellantis have lost production of more than 16,000 vehicles since the strike started last week at a Ford assembly plant near Detroit, a GM factory in Wentzville, Missouri, and a Jeep plant run by Stellantis in Toledo, Ohio. Anderson Economic Group, a consulting firm in Michigan that tracks the industry, estimated Friday that the three big automakers have suffered economic losses of more than $1.6 billion.

The carmakers and some of their suppliers have laid off about 6,000 workers in moves they say are related to the strike. GM shut down a factory in Kansas that relies on parts stamped at the Wentzville plant.

Still, the impact is not yet being felt on car lots around the country 鈥� it will probably take a few weeks before the strike causes a significant shortage of new vehicles, according to analysts. Prices could rise sooner, however, if the prospect of a prolonged strike triggers panic buying.

In bargaining, the union is pointing to the carmakers' huge recent profits and high CEO pay as it seeks wage increases of about 36% over four years. The companies have offered a little over half that amount.

鈥淲e aren鈥檛 getting paid what we are supposed to. I feel like our CEO is getting all our money,鈥� said Antione Turner, who walked off his job Friday at a GM customer-care center in Belleville, Michigan.

Turner said after working there 10 years, he makes $31 an hour. On the same picket line, Shelton Matthews, who started at GM three years ago, makes $20 an hour because the company鈥檚 tiered wage structure mean lower pay for new workers.

鈥淧ay disparity is the key issue" in the strike, Matthews said. 鈥淵ou鈥檙e doing, if not harder work, the same work as the person next to you with significantly less pay.鈥�

The companies say they can鈥檛 afford to meet the union鈥檚 demands because they need to invest profits in a costly transition from gas-powered cars to electric vehicles. They have dismissed out of hand some of the demands, including 40 hours' pay for a 32-hour work week.

Fain said that Ford has agreed to some union proposals, including the restoration of cost-of-living wage increases that were dropped several years ago, better profit-sharing and improved job security.

A Ford spokesman, Daniel Barbossa, said the company 鈥渋s working diligently with the UAW to reach a deal that rewards our workforce and enables Ford to invest in a vibrant and growing future."

鈥淎lthough we are making progress in some areas, we still have significant gaps to close on the key economic issues,鈥� he said.

Rather than bargain with one company and set a pattern for contracts at the other two, the UAW has been negotiating simultaneously with all three Detroit giants. By favoring Ford after a week of talks, the UAW moved closer to its traditional bargaining pattern: getting the best deal it can from one company, then expecting the others to match it.

Fain had promised all week to escalate the strike if there wasn't significant progress in negotiations. Targeting the parts-distributions centers could inflict quick pain on GM and Stellantis, said Daniel Ives, an analyst with Wedbush Securities.

鈥淭he UAW is going for the gut punch as this strike gets a lot nastier,鈥� Ives said. He called it 鈥渁 very strategic and risky poker move by the UAW.鈥�

Other industry observers said that dragging current owners of GM and Stellantis vehicles into the fray will backfire on the union.

鈥淧eople who have a car that they need to repair will not be sympathetic to the UAW when they can't get the car fixed and can't get to work,鈥� said Eric Gordon, a business professor at the University of Michigan.

Even with Friday's expansion, the strikes involve only a little over 10% of the UAW's 146,000 members. That will make the union's $825 million strike fund last longer, as most members will keep working under the expired contract and pay into the fund. However, the longer the strike lasts, the greater the risk of dissension between workers who will keep collecting full paychecks and those getting $500 a week from the union.

Fain believes that most of the public is on the union's side. He invited anyone who supports the union 鈥� 鈥渁ll the way up to the president of the United States鈥� 鈥� to join strikers on the picket lines.

Fain had previously seemed lukewarm at best about a Biden visit, saying that the strike was the union鈥檚 fight, not the president鈥檚.

Biden's visit Tuesday would come one day before the leading contender for the Republican nomination, former President Donald Trump, plans to speak to union members in Detroit.

___

Associated Press journalists Christopher Megerian and Corey Williams contributed to this report.