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What is UAW? What to know about the union at the heart of industry-wide auto workers strike

2024-12-19 09:12:26 Markets

A breakdown in negotiations late Thursday night has led to major union movement in the automotive industry.

UAW, the labor union representing hundreds of thousands of auto industry workers, called a strike when the deadline to make a new deal passed at 11:59 p.m. Thursday, leading to 13,000 members walking off the job. The "Stand Up Strike," as union leaders have called it, is set to potentially become one of the largest in the industry's history, as it is targeting not just one but all of the "Detroit Three," the largest automotive manufactures in the country.

With workers from at least three states joining the picket line, the ripple effect is expected to be felt far and wide. Here is what we know so far about the 2023 UAW strike.

UAW targets big three in strike:'We will strike all three of the Big Three at once': UAW to strike GM, Ford and Stellantis

What is UAW?

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers, is a union with 400,000 active members and more than 580,000 retired members in the United States, Canada and Puerto Rico.

With 600 local unions, the UAW represents workers across the industry, including multinational corporations, small manufacturers, state and local governments, colleges and universities, hospitals and private non-profit organizations, according to their website.

Founded in 1935, the UAW has a history of participating in strikes and labor disputes, winning concessions like the first employer-paid health insurance plan for industrial workers and the first cost-of-living allowances.

The last UAW action in 2019 saw 46,000 GM workers on strike for 40 days, costing GM $3 billion.

How many members are in UAW:UAW membership peaked at 1.5 million workers in the late 70s, here's how it's changed

Who is UAW striking against?

UAW is striking against the automotive companies known as the "Detroit Three." This includes General Motors, Ford and Stellantis, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands.

The UAW confirmed that about 13,000 members are walking the picket lines.

Why is UAW striking?

The UAW declared the strike, which the union is calling the "Stand Up Strike," at 11:59 p.m. on Thursday when contract talks failed to secure new labor agreements before the current deals expired.

UAW leader Shawn Fain revealed the list of demands on Aug. 1, including:

  • Eliminating wage tiers.
  • A 40% wage increase over the life of the contract. The 40% signifies the increase to CEO salaries.
  • Restoring the cost-of-living allowance adjustments to counteract inflation.
  • Defined benefit pension for all workers.
  • The right to strike over plant closures.
  • A reduced work week and more paid time off.
  • Limiting the use of temporary workers.
  • Increased benefits to current retirees.

Live strike updates:UAW strike 2023 against Detroit automakers: Live updates, news from the picket sites

Where are the strikes?

UAW members at three assembly plants in Michigan, Ohio, and Missouri went on strike Thursday. They have targeted specific locations, including the Ford Michigan Assembly Plant (Final Assembly and Paint only) in Wayne, Stellantis' Toledo Assembly Complex in Ohio and General Motors' Wentzville Assembly in Missouri.

What does this mean for auto employees, strikers?

Financial challenges are a large consideration in any strike. While workers are entitled to strike pay, they must wait at least eight days for it to kick in, The Detroit Free Press, part of the USA TODAY network, previously reported.

The union’s strike fund, estimated at $825 million, provides the money for strike pay, which amounts to $500 per week. Strike pay is prorated, meaning each day of lost wages on strike — Monday through Friday — counts for an eligible member to receive "one day’s Strike Assistance at the prorated daily amount," according to UAW guidelines.

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