More than 12,000 Ford, GM and Jeep workers go on strike in the US
For the first time in history, the ‘Big Three’ US car-makers have had to close factories simultaneously due to industrial action by union-backed employees.
Approximately 12,700 members of the United Auto Workers (UAW) union in the US have gone on strike against the country’s ‘Big Three’ car-makers – Ford, General Motors and Stellantis (the parent company of Jeep, Ram, Dodge, Chrysler, and others) – in what has been described as the “most ambitious US industrial labour action in decades”.
News agency Reuters reports the strike began at midnight US time on Friday 16 September, following weeks of failed negotiations between UAW union leaders and the car-maker’s representatives.
While threats of industrial action were first suggested in mid-July, the car-makers and UAW officials failed to negotiate a deal which appeased both sides before the September 16 deadline.
Among the UAW’s demands is a 40 per cent pay increase by 2027 – reflecting those of the car-maker’s CEOs, and including an immediate 20 per cent increase – as well as better job security amid fears of the workforce being reduced as electric vehicles become more popular.
According to Reuters, it is the first time the UAW has gone on strike against all three of the car giants at the same time.
At present, the only Australian-delivered vehicles at risk of being affected by the strike are the Jeep Wrangler and Gladiator, which are made at the Stellantis factory in Toledo, Ohio – while models from other Stellantis-owned brands such as Ram, Dodge and Chrysler are unaffected.
Drive has contacted Jeep Australia for comment on whether the strike is expected to affect local supply of the Wrangler and Gladiator.
While Ford’s Wayne, Michigan factory – which has been temporarily closed due to 3300 employees walking off the job – produces the North American-market Ford Ranger and Bronco, the strike will not affect Australian-delivered Ford Rangers as they are supplied from Thailand.
Ford has already announced the strike will result in 600 workers from the Wayne factory being indefinitely laid off, due to the impact of down-time on the facility.
The General Motors strike at its Wentzville, Missouri factory also will not affect the Australian supply of its vehicles, with the Chevrolet Colorado pick-up and Express van (plus their respective GMC Canyon and Savanna siblings) being the only models impacted.
Last year, the three US car giants accounted for approximately 40 per cent of total vehicle sales in the country.
In Australia, 37,947 of the 1,081,429 new vehicles sold in 2022 were produced in the US, accounting for just 3.5 of the local market.