Traditionally, the UAW has walked out of factories to pressure automakers during contract negotiations. But UAW President Shawn Fain has structured this round of strikes to disrupt only a limited number of plants and allow the Detroit companies to keep producing their best-selling and most profitable vehicles. That’s an unusual approach in a wage dispute, and it could make a deal more difficult.
During previous rounds of contract talks, the Big Three have offered to give workers two 3% pay increases over the life of their contracts and one-time lump sum payments. But they and the union remain far apart on several other issues, including measures to ensure automakers preserve jobs and discourage them from closing U.S. plants and cost-of-living adjustments.
In a call with industry analysts, Ford Chief Executive Jim Farley accused the UAW of holding up a new U.S. labor agreement in a bid to force the automaker to pay workers at its planned battery plants the same top wages as those at assembly plants. He also disclosed that the automaker is awaiting “final language” from the U.S. Treasury on whether batteries made at a planned Michigan plant using Chinese technology will qualify for tax credits, which are crucial to the company’s electric vehicle plans.
Farley, 58, isn’t the sort of executive who hangs out at the yacht club sipping martinis, but rather the man who once won a race car championship for his college alma mater, Wharton. He grew up working at a family business that built automobile parts, and he chose to work for Ford over Wall Street in 2002 because it would allow him to use his engineering and sales skills on an exciting industry frontier.
He inherited a challenging situation in 2022 when his predecessor, Hackett, left for the CEO job at General Motors. The union’s membership was declining, and the union was facing a loss of influence in state elections.
The UAW had been criticized for its low participation in state elections, where members choose delegates to attend conventions. The delegates are the voting bloc that sets national policy and negotiates with the Big Three’s automakers for their contracts. The union also needed more clout in the local elections, where it has traditionally won most of the delegate votes.
Farley is trying to change that. He says he’s met with several UAW leaders and will meet with more in the coming days. He also asks for input from union members who work at the plants. He’s seeking to understand how many people are affected by the strike, and he wants to know what issues they feel are most important. He said he would take that information to the automakers and the union’s top negotiator, Gary Jones. He promised to be transparent about the process and “honest with our members.” He added that he would not accept a deal that he believes will hurt the workforce or the company’s customers.
