AP Photo/Paul Sancya
- A war of words broke out between Detroit CEOs and the UAW.
- GM, Ford, and some suppliers are resorting to layoffs.
- UAW President Shawn Fain will address members again on Friday.
The ripple effects of the UAW's unprecedented strike at Ford, GM, and Stellantis are getting wider as the work stoppages stretch through a third week.
Since the latest round of plant walk-outs in Chicago and Lansing, Michigan on Friday, public exchanges between automotive CEOs and union leadership have reached a boiling point. Meanwhile, employees not on strike at both the Detroit car companies and their suppliers are being hit with temporary layoffs in response to the lack of production.
The UAW has been slowly expanding its strike at targeted factories since union president Shawn Fain said the companies failed to provide acceptable contract offers prior to a September 14th deadline. It's the first time in history that the UAW has gone on strike at all three Detroit companies at the same time, in a strategy that has changed the way bargaining works in the auto industry.
As the strike drags on, the impact to the Detroit companies' business models only increases and rivals like Tesla could benefit, analysts have said. Meanwhile, public sentiment is on the UAW's side, with both Democrats and Republicans voicing support for the union's demands of 40% raises and an end to their tiered wage system.
War of words
Ford CEO Jim Farley and GM CEO Mary Barra appear to be losing patience with the UAW's strategy, accusing Fain of slow-walking negotiations and spending too much time in the spotlight.
"It's clear that there is no real intent to get to an agreement," Barra said in a searing statement Friday after a third GM facility was targeted with a strike. "It's clear Shawn Fain wants to make history for himself, but it can't be to the detriment of our represented team members and the industry."
The UAW responded on X, formerly known as Twitter, saying that the CEO had not attended bargaining that week.
Earlier Friday, CEO Jim Farley also poked at Fain's many public appearances, telling analysts on a conference call that Fain "has been on the TV more than Jake from State Farm." He also accused the union of holding a final deal "hostage" over the fate of electric vehicle battery plants.
The UAW hit back, saying Farley was "lying about the state of negotiations."
"Like a good neighbor, we're available 24/7," the UAW said in a statement. "Name the time and the place you want to settle a fair contract for our members, and we'll be there."
Layoffs
Both GM and Ford have also resorted to layoffs at factories where employees are not on strike, citing the impact of the UAW's targeted work stoppages.
As of Thursday, Ford had laid off about 1,300 employees since the strike began, with the most recent being 350 workers at a transmission plant and 50 employees at an axel plant, both in Michigan.
GM, meanwhile, has laid off some 2,000 workers across five factories since the beginning of the strike, with the most recent being 164 workers at a Stamping plant in Parma, Ohio this week.
The impact of lost production is also affecting suppliers now, with the vehicle-suppliers association MEMA reporting about a third of suppliers have issued layoffs due to the UAW strike.
As of Thursday afternoon, the union was reportedly in possession of new counter-offers from all three companies. Stellantis made a counter moments before Fain was scheduled to talk to members on Friday, sparing them from a third work stoppage. Ford and GM delivered their latest offers this week.
Fain is scheduled to address UAW members in a livestream Friday afternoon, a platform he's previously used to expand the strike when he's unhappy with the pace of negotiations.