The Detroit 3 Respond to UAW’s Messaging as Strike Deadline Looms
The Detroit 3 automakers have started countering the messaging from the United Auto Workers (UAW) as both sides race against time to reach an agreement before the impending strike expansion on Friday.
Ford Motor Co. Fact-Checks UAW President’s Claims
Ford Motor Co. issued a detailed statement on Monday, fact-checking the comments made by UAW President Shawn Fain. While Ford emphasized its commitment to a “win-win” approach, it also refuted some of Fain’s claims. Specifically, Ford clarified that its 2022 earnings are not a record, and CEO Jim Farley’s compensation increase has been less than what Fain alleged.
Union’s Claims on Compensation and Stock Buybacks
The UAW President has criticized the CEOs of the Detroit 3 for their compensation and stock buybacks. Ford countered these arguments by stating that Farley’s compensation has increased by 21 percent over the past four years, and stock buybacks have only occurred twice, with significantly less volume than General Motors.
General Motors CEO Frustrated by the Strike
General Motors CEO Mary Barra expressed her frustration with the ongoing strike, stating that the workers “didn’t need to be on strike right now.” She also defended her compensation package, highlighting its performance-based nature.
Current Compensation and Ford’s Offer
Ford highlighted that its current hourly employees are among the highest paid manufacturing workers in the country, with an average annualized compensation of $112,000. Ford’s rejected offer aimed to increase the average total compensation to $133,000, including $92,000 in cash alone. Ford also shared opinion pieces arguing that the union’s demands could put the Detroit 3 at a disadvantage compared to nonunion competitors like Tesla Inc.
Stellantis Defends Its Position
Mark Stewart, Stellantis’ North America COO, appeared on various television and radio shows to defend the company’s position. He reiterated that Stellantis had made a competitive offer that aligned with proposals from the other two automakers. Stewart also clarified certain details of the offer, including Stellantis’ interest in repurposing some of its facilities.
Potential Closures and Sales in Stellantis’ Proposal
The UAW has accused Stellantis of seeking the unilateral right to close or sell off 18 facilities, including assembly plants, powertrain plants, and parts depots. Facilities mentioned in the proposal include the Tipton Transmission Plant, Trenton Engine Complex, Mount Elliot Tool & Die, Belvidere Assembly Plant, a Detroit warehouse, office space, and the North American headquarters and technology center. Stellantis has plans to repurpose the idled Belvidere Assembly Plant into a parts megahub and potentially use a portion of it for electric vehicle battery components. The proposal also includes the consolidation of Mopar units into larger distribution centers.
Stellantis’ Position on Job Preservation and Modernization
Stewart assured reporters that the company’s plans for Mopar would not lead to job reductions. The proposal primarily focuses on modernizing operations and improving efficiency while maintaining the current number of jobs.
Strike Expansion Deadline and Consequences
UAW President Fain announced that the automakers have until noon on Friday to make “serious progress” in negotiations before the strike expands. While Fain did not specify how many additional plants would join the strike, he indicated that the UAW might refrain from adding plants as long as the talks are deemed productive. Currently, around 13,000 workers from three plants are on strike, and they would become eligible for strike pay from the union on the day of Fain’s next announcement. The strike has already led to additional layoffs in Michigan and Kansas.
