(WXYZ) — United Auto Workers union President Shawn Fain hopped on Facebook Live to give an update on Big Three negotiations and strike strategy Wednesday afternoon, one day before the contract deadline.
"Our message to the companies was clear: if we don't have a fair contract by midnight on Thursday night, we will strike," Fain said.
Fain revealed what they are calling a "Stand Up Strike" strategy if a deal does not arrive before the deadline, where they are preparing to strike the Big Three but at a limited number of targeted locations. Based on how the bargaining is going, Fain said they could announce more locals to stand up and strike. He said the locals that aren't called to strike would maintain "a constant strike readiness" as they work under an expired agreement.
"This plan only works if the locals who are called to strike and do so, and if the locals who are not yet called do not strike and keep working. This is going to create confusion for the companies. It's going to keep them guessing on what might happen next. And it’s going to turbocharge the power of our negotiators," Fain said.
Fain said there has been movement in the negotiations with automakers, but that they are "very far apart" when it comes to the UAW's key priorities. The UAW wants double-digit pay increases, the end of the tiered wage system, better healthcare, a 32-hour work week and more.
"All together, we are seeing movement from the companies, but they still aren't willing to agree on the kinds of raise that will make up for inflation on top of decades of falling wages. And their proposals don't reflect the massive profits that we've generated for these companies," said Fain on Wednesday.
Offers have been sent to the UAW from all three automakers — General Motors, Ford Motor Co. and Stellantis — but agreements haven't been met. On Tuesday, Ford CEO Jim Farley said a new offer sent to the UAW is “the most lucrative offer in 80 years of working with the UAW.”
Fain addressed that proposal in part by saying, "I find it funny and sad that Jim Farley, the CEO of Ford, told the press last night at the (Detroit) Auto Show that Ford had offered the elimination of tiers. That's not true. Tiers remain at Ford under their proposal."
Here's a look at the wage slide Fain presented during the Facebook Live:
Fain also showed how far the Big Three still are from the UAW's main demands.
“We’re preparing to strike these companies in a way they’ve never seen before," said Fain.
He added, speaking to the membership: "Nobody’s coming to save us … our greatest hope and our only hope is with each other.”
He said he's at peace with the decision to strike if they must.
In August, 97% of UAW workers voted yes to authorize a strike against the Big Three.
Fain said in early September that the union planned to on strike against any Detroit automaker that didn't reach a new agreement by the time the contract expires.
Ahead of this potential strike, the UAW has $825 million in its strike fund, enough to pay 150,000 UAW members $500 a week for 11 weeks.
In most cases, workers on strike are not eligible for unemployment benefits. Members who find other work during the strike won't get strike pay if making more than $500 a week. Strike benefits do cover health care, but do not cover vision, hearing, dental, sick or accident benefits.
The contract deadline is 11:59 p.m. on Thursday, Sept. 14.
"Tomorrow night, I want you to be ready to stand up," Fain said. "I want you to be able to stand up for family, I want you to be able to stand up for community, I want you to be able to stand up for future generations, I want you to be able to stand up for cooperate greed. So let's stand up and make history together."
All three automakers released statements following the remarks:
General Motors:
“We continue to bargain directly and in good faith with the UAW and have presented additional strong offers. We are making progress in key areas that we believe are most important to our represented team members. This includes historic guaranteed annual wage increases, investments in our U.S. manufacturing plants to provide opportunities for all, and shortening the time for in-progression employees to reach maximum wages.”
Stellantis:
We’re still awaiting the UAW’s response to the offer we presented yesterday. Our focus remains on bargaining in good faith to have a tentative agreement on the table before the collective bargaining agreement expires.
Ford President and CEO Jim Farley:
The Ford team continues to put 100% of our energy into reaching an agreement with the UAW that rewards our valued employees and allows the company to invest in the future. If there is a strike, it’s not because Ford didn’t make a great offer. We have and that’s what we can control.
In fact, we have put four offers on the table starting Aug. 29 and each one has been increasingly generous. We still have not received any genuine counteroffer. On Tuesday, Bill Ford and I sat down with the union at the main table for a major offer. As we were walking in the room, we learned President Fain would not be attending. Nevertheless, Bill and I laid out a historically generous offer to the UAW Ford bargaining team because we listened to the UAW demands and we care about our employees. Here are the facts. Ford: '
• Significantly increased our proposal on wage increases;
• Offered Cost of Living Adjustments, or COLA;
• Fully eliminated wage tiers so all employees can achieve industry-leading wages – and shortened to four from eight years the time it takes hourly employees to reach the top wage;
• Increased contributions to in-progression retirement savings;
• Protected health care benefits that would continue to rank in the top 1% of all employersponsored medical plans for lowest employee cost sharing; and
• Added more paid time off, with up to five weeks of vacation and 17 paid holidays each year (with the addition of Juneteenth).
The first we learned President Fain received the offer was on Facebook Live this evening. So again, we are here and ready to reach a deal. We should be working creatively to solve hard problems rather than planning strikes and PR events.
Please remember that Ford, more than any other company, has bet on the UAW and treated the UAW with respect. We have been incredibly supportive of the union. We have gone well beyond any contract language in adding jobs and investment.
The future of our industry is at stake. Let’s do everything we can to avert a disastrous outcome.
On Friday, the UAW is having a rally in Detroit called Save the American Dream.
