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1 big thing: UAW's tactics, explained

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National

Ford CEO Jim Farley said Friday the automaker is "very close" to a record labor agreement with the UAW, but he believes the union is delaying the deal over reservations about electric vehicle battery plants. 

Why it matters: The shift to electric vehicles, and the impact that could have on unionized auto workers, has long been a simmering issue in labor talks with U.S. automakers. 

As the two sides move closer to agreement on big wage and benefit hikes, job security in the EV era is now front and center. 

Driving the news: In a call with reporters Friday, Farley said Ford's negotiations with the union are at a critical juncture.

The UAW had demanded a 40% wage hike over four years; Ford had offered 20%. 

The two sides are now "really close on the economics," Farley said, adding "we are confident we would be able to make the investments we need to, including $50 billion in EVs."

"We believe the UAW is holding the deal hostage over battery plants."

Catch up fast: Ford earlier this week paused construction of a $3.5 billion electric vehicle battery plant in Michigan, citing concerns about its ability to competitively operate the plant.

The plant is one of four battery factories that Ford plans to build in the U.S. to supply future EVs.

UAW President Shawn Fain slammed the decision earlier this week, saying it was "a shameful, barely-veiled threat by Ford to cut jobs."

The UAW wants automakers to pay workers at battery plants the same higher wages as workers that build engines and transmissions.

Ford says workers haven't even been hired yet for the battery plants, which are still under construction, so they haven't even decided whether to join the union, much less negotiate a contract. 

Between the lines: Three of the battery plants Ford is building in Tennessee and Kentucky are joint ventures with a Korean partner, but the Michigan plant has been the subject of intense scrutiny because of Ford's plan to use technology licensed from a Chinese company. 

Republicans in Congress are investigating the deal because of worries that it could facilitate the flow of U.S. tax subsidies to China.

Farley said the company paused work on the battery plant in order to assess labor costs and how new rules around future EV tax credits will be implemented.

Ford also wants to see "whether we can secure a deal that allows us to invest in the products those batteries are going to go into."

What they're saying: "What is at stake here is the future of the domestic auto industry, future of industrial Midwest, and future of good paying manufacturing jobs."

Where it stands: It's been two weeks since the UAW launched its unprecedented strike against GM, Ford and Stellantis.

On Friday, the union expanded the strike to include two additional factories: a GM plant in Lansing, Michigan, and a Ford plant in Chicago, affecting 7,000 workers.

There are now five assembly plants and 38 parts distribution centers on strike across the country. 

The additional walkouts Fain announced Friday mean that 25,000 workers, or 17% of UAW members at the Big Three, are currently on strike.

Ford CEO: UAW "holding the deal hostage" over EV battery plants

The two sides are now "really close on the economics," he said.

The UAW expanded its strike against Ford and General Motors on Friday.

The UAW expanded its strike against General Motors and Ford on Friday. Photo: Bill Pugliano/Getty Images

Automakers

Ford CEO Jim Farley said Friday the automaker is &quot;very close&quot; to a record labor agreement with the UAW, but he believes the <a class="gtmContentClick" data-vars-link-text="union is delaying" data-vars-click-url="https://www.axios.com/2023/09/29/uaw-strike-expands-ford-gm-automakers" data-vars-content-id="05c2c972-6e82-439b-9166-ce92381d11dc" data-vars-headline="Ford CEO: UAW &quot;holding the deal hostage&quot; over EV battery plants" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/29/uaw-strike-expands-ford-gm-automakers" target="_self">union is delaying</a> the deal over reservations about electric vehicle battery plants. Why it matters: The shift to electric vehicles, and the impact that could have on unionized auto workers, has long been a simmering issue in labor talks with U.S. automakers.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

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The United Auto Workers union is expanding its strike against General Motors and Stellantis after failing to reach a deal one week into the work stoppage.

Why it matters: The additional work stoppages — including all 38 parts distribution centers at GM and Stellantis but not additional Ford factories — turns up the heat on the Detroit automakers as the union pushes for new labor deals.

The UAW wants wage increases and better benefits for the nearly 150,000 unionized workers at the Detroit Three, while the automakers want a contract that allows them to maintain profits and sell electric vehicles at an affordable price.

Driving the news: UAW President Shawn Fain said the company had made "serious" progress at Ford, where it won't expand the strike, but said Stellantis and GM "are going to need some serious pushing."

"We will shut down parts distribution until those two companies come to their senses and come to the table with a serious offer," Fain said.

He also specifically invited President Biden to join the picket line as the strike continues.

Catch up quick: The union last week launched an unprecedented strike against all three automakers, threatening to expand it without serious progress in negotiations. About 13,000 UAW workers — less than 1 in 10 — had been part of the initial strike, which included three plants that make small pickups and SUVs:

The impact: The expanded strike includes an additional 5,600 workers. All strikers get $500 weekly from the UAW's strike fund after they've been out of work for a week.

The first week of the strike — which also caused GM and Stellantis to lay off workers at plants that relied on components from the shuttered factories — cost the economy $1.6 billion, Anderson Economic Group estimated Friday.

What they want: The UAW has asked for a 36% wage increase, traditional pensions, retiree health care and a 32-hour work week, among other things.

The automakers — which have called the union's demands untenable — have offered wage increases of about 20% to 21%, a restoration of cost-of-living adjustments (COLA) and some improved benefits.

What they're saying: "We're not going to wait around forever for a fair contract at the Big Three," Fain said Friday. "The companies know how to make this right. The public is on our side and the members of the UAW are ready to stand up."

GM president Mark Reuss, in an op-ed in the Detroit Free Press this week, clapped back at what he called UAW "misinformation," saying the company has made a record offer and that "often in these situations, the clouds of rhetoric can obscure reality."

Ford said Friday in a statement that the company "is working diligently with the UAW to reach a deal" but there are "significant gaps to close on the key economic issues."

GM and Stellantis had no immediate comment Friday.

The bottom line: The stakes are escalating.

Go deeper: UAW strike plays out like slow-motion car wreck for Detroit automakers

Editor's note: This story has been updated with additional details about the strike and comment from Ford.

invited President Biden to join the picket line

UAW strike plays out like slow-motion car wreck for Detroit automakers

UAW expands strike against GM and Stellantis

The UAW and automakers are at odds over what demands can be met.

United Auto Workers members and supporters rally at the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan.

United Auto Workers members and supporters rally at the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan. Photo: Bill Pugliano via Getty

United Automobile Workers

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Axios Markets

Leaked private messages from a UAW official that surfaced late Thursday could further undermine trust at the bargaining table — making a contract deal even more elusive as the union prepares to expand its strike against the Detroit automakers. 

Why it matters: The leak ordeal is one of the first major blowups for UAW president Shawn Fain's team and could test the union's new strategy — and its new staffers. 

Catch up quick: Screenshots of the leaked messages from UAW communications director Jonah Furman, first reported by the Detroit News and also obtained by Axios, elicited outrage and accusations of bad-faith bargaining from the automakers.

In one of the messages, Furman said the UAW is inflicting "reputations damage and operational chaos" on GM, Ford and Stellantis.

State of play: After being sworn into office in March, Fain, who ran as a reformer, appointed a new leadership team — including Furman.

Fain elevated like-minded UAW members and hired outsiders who could help with important roles like organizing, communications and strategy, sources familiar with the union's structure tell Axios.

The new staffers are among roughly a dozen outsiders who have joined Fain's inner circle and are pushing, alongside reformers within the UAW ranks, for more of a grassroots culture at the union, the sources said.

They're providing media training, for example, to rank-and-file members — while also encouraging members to organize activities that aren't stage-managed by union bosses.

The big picture: UAW strategy under Fain looks very different from the old days when union negotiations happened behind closed doors and neither side talked publicly about the play-by-play.

But Fain is negotiating in public, making his case in the news media and directly to UAW members on social media.

In interviews and long Facebook Live streams, Fain outlines the specifics of the bargaining process — not only his union's demands but the companies' counteroffers too.

Meanwhile: Highly polished, political-style videos feature Fain using fiery, progressive language about "corporate greed" and "the billionaire economy."

The rhetoric has echoes of Bernie Sanders — and indeed a couple of Fain's communications staffers, like Furman, once worked for the Vermont senator.

The other side: Automakers are frustrated not just by the tactics, but by what they say is misinformation being spread by the union.

In an unprecedented response, GM president Mark Reuss even penned an opinion column in the Detroit Free Press calling the UAW's demands "untenable" and refuting claims made by Fain that workers make poverty-level wages.

The backstory: Fain is the first democratically elected UAW president in its 88-year history, meaning the rank and file voted directly for a leader, rather than letting delegates choose.

The new voting system was established by the Department of Justice after a corruption scandal that resulted in 16 convictions, including prison time for two former UAW presidents. (The union is still overseen by an independent, court-appointed monitor through 2026.)

Fain just squeaked by in a runoff to win the top spot, and almost immediately had to start bargaining with the Detroit Three. Thus, part of the strategy is solidifying more support from rank-and-file members.

The bottom line: He's operating more like a politician — rallying the constituents — than a backroom union boss, and some industry observers wonder whether he is overpromising what he can deliver.

UAW boss Shawn Fain's union tactics, explained

It's public, fiery — and confounding to the automakers.

Labor strikes

Leaked <a class="gtmContentClick" data-vars-link-text="private messages" data-vars-click-url="https://www.axios.com/2023/09/22/uaw-strike-automakers-operational-chaos-fain-leaked-messages" data-vars-content-id="98abd815-f058-4692-87cf-3d4c83c5b8a6" data-vars-headline="UAW boss Shawn Fain&#x27;s union tactics, explained" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/uaw-strike-automakers-operational-chaos-fain-leaked-messages" target="_self">private messages</a> from a UAW official that surfaced late Thursday could further undermine trust at the bargaining table — making a contract deal even more elusive as the union prepares to expand its strike against the Detroit automakers. Why it matters: The leak ordeal is one of the first major blowups for UAW president Shawn Fain&#x27;s team and could test the union&#x27;s new strategy — and its new staffers.

The United Auto Workers union is widening its historic strike against Ford and General Motors, UAW president Shawn Fain announced Friday.

Driving the news: The decision comes after ongoing contract negotiations didn't result in meaningful progress with the two automakers this week, Fain said.

Fain announced two additional strike locations: a GM factory plant in Lansing, Michigan, and a Ford factory in Chicago, affecting 7,000 workers. 

The union did not expand its strike against Stellantis, saying the company that makes Jeep and Ram vehicles had made a substantial offer to the union, showing good progress toward a deal.  

What they're saying: "Stellantis has been intensely working with the UAW to find solutions to the issues that are of most concern to our employees while ensuring the Company can remain competitive given the market's fierce competition," Stellantis said in a statement Friday.

"We have made progress in our discussions, but gaps remain. We are committed to continue working through these issues in an expeditious manner to reach a fair and responsible agreement that gets everyone back to work as soon as possible."

Catch up quick: It's been two weeks since the UAW launched its unprecedented strike.

The strike initially targeted one assembly plant from each of the automakers. 

Last week, the union expanded the strike to target 38 parts distribution centers operated by GM and Stellantis. Fain said the union had made progress in talks with Ford, so UAW was holding off on expanding the strike at its facilities.

State of play: The UAW is asking for a 36% pay increase and a return to traditional pensions and retiree health care.

Company leaders at GM and Stellantis have grown frustrated with what they see as a lack of participation from Fain and delays in receiving counterproposals from UAW, CNBC reported.

Earlier this week, President Biden joined striking UAW workers on the picket line and expressed his support for their cause.

Go deeper: UAW strike scrambles political allegiances

Editor's note: This story has been updated with comment from Stellantis.

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UAW expands strike against Ford, General Motors

The decision comes after ongoing negotiations failed to produce a breakthrough this week.

Striking United Auto Workers march in front of the Stellantis Mopar facility on Sept. 26 in Ontario, California. Photo: Gina Ferazzi / Los Angeles Times via Getty Images

The <a class="gtmContentClick" data-vars-link-text="United Auto Workers union" data-vars-click-url="https://www.axios.com/2023/09/14/uaw-strike-deadline-updates-economy" data-vars-content-id="b8482a59-edcd-4ff6-b06b-96cbf8833e8a" data-vars-headline="UAW expands strike against Ford, General Motors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/14/uaw-strike-deadline-updates-economy" target="_self">United Auto Workers union</a> is widening its historic strike against Ford and General Motors, UAW president <a class="gtmContentClick" data-vars-link-text="Shawn Fain" data-vars-click-url="https://www.axios.com/2023/09/25/uaw-strike-shawn-fain-president" data-vars-content-id="b8482a59-edcd-4ff6-b06b-96cbf8833e8a" data-vars-headline="UAW expands strike against Ford, General Motors" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/25/uaw-strike-shawn-fain-president" target="_self">Shawn Fain</a> announced Friday.Driving the news: The decision comes after ongoing contract negotiations didn&#x27;t result in meaningful progress with the two automakers this week, Fain said.

Leaked messages from an aide of UAW president Shawn Fain about the union's strike strategy against Detroit automakers say the UAW is inflicting "reputations damage and operational chaos" at GM, Ford and Stellantis.

Why it matters: The messages, in a private group chat on X (formerly Twitter) shine a new light on the union's hardball tactics under a new strategy orchestrated in part by outside labor activists who joined the UAW staff — and Fain's inner circle — shortly after his election in March. 

Screenshots of the leaked messages from UAW communications director Jonah Furman, first reported by the Detroit News and also obtained by Axios, elicited outrage and accusations of bad-faith bargaining from the automakers.

The fallout is likely to further undermine trust at the bargaining table, making a deal even more elusive as the union prepares to expand its strike to more factories on Friday.

Details: In the messages, Furman says the rationale behind the union's so-called "Stand Up" strategy is to strike at select plants and keep the companies guessing.

"(I)f we can keep them wounded for months they don't know what to do. The beauty is we've laid it all out in the public and they're still helpless to stop it."

"And creating compression points of national attention for them to do the right thing is way different than just waiting for a month for the next offer. Plus, we're breaking pattern and they're bargaining against each other for the first time in 70 years."

Instead of bargaining with one company to achieve a pattern deal that can be applied to all three Detroit automakers, Furman says the UAW aims to turn the companies against each other in a bid to secure the best deal for union members.

Of note: Furman is a former reporter at Labor Notes, an advocacy nonprofit, who also worked as a national labor organizer for Bernie Sanders' 2020 presidential campaign. In the group chat, he also crowed:

"(Two) years ago I was writing labor notes articles about John Deere. Now we're striking all 3 of the Big 3 and gonna' win some historic gains. CNN is carrying our comms and picket line live. The White House calling concerned about what we might say. Members screaming 'I LOVE YOU' to our folksy gen x class struggle christian white dude from Indiana who quotes Malcolm X," an apparent reference to UAW President Fain. 

Furman didn't respond to Axios' request for comment. While he would not confirm to the Detroit News that he wrote the messages, he called them "private messages" that "you shouldn't have."

At 1:57 p.m. Thursday, according to a screenshot obtained by the Detroit News, he wrote: "Someone leaked my remarks in here to the business press. I'm out."

What they're saying: GM said in a statement that it's "now clear that the UAW leadership has always intended to cause months-long disruption, regardless of the harm it causes to its members and their communities."

The statement added that the leaked information "calls into question who is actually in charge of UAW strategy and shows a callous disregard for the seriousness of what is at stake. UAW leadership needs to put the interests of its members and the country over their own ideological and personal agendas."

Ford's chief communications officer, Mark Truby, said in a statement: "It's disappointing, to say the least, given what is at stake for our employees, the companies and this region," 

"For our part, we will continue to work day and night, bargaining in good faith, to reach an agreement that rewards our workforce and allows Ford to invest in a vibrant and growing future."

A Stellantis spokesperson said: "These reported comments made by the UAW communications director are incredibly disturbing and strongly indicate that the UAW's approach to these talks is not in the best interest of the workforce. We are disappointed that it appears our employees are being used as pawns in an agenda that is not intended to meet their needs."

Where it stands: Fain, who ran as a reformer after a corruption scandal that landed two of his predecessors in prison, has been employing far more aggressive tactics in the current round of bargaining than the union has in the past. 

Its unprecedented simultaneous strike at all three automakers currently involves about 13,000 UAW workers — around 10% of the union's 146,000 workers employed at GM, Ford and Stellantis — at factories that build small pickup trucks and SUVs in Missouri, Michigan and Ohio.

Fain is set to reveal new work stoppages Friday morning. 

Go deeper: How the UAW strike could disrupt the economy

UAW official says union creating "chaos" for automakers, leaked messages show

The messages shine a new light on the union's hardball strike tactics.

UAW picketers outside Stellantis headquarters in Auburn Hills, Mich. Photo: Matthew Hatcher via Getty Images

Labor unions

Leaked messages from an aide of <a class="gtmContentClick" data-vars-link-text="UAW president Shawn Fain" data-vars-click-url="https://www.axios.com/2023/09/19/uaw-strike-shawn-fain-christian-preacher-religion" data-vars-content-id="f91c2d73-04a6-4d0c-8459-557cab165c03" data-vars-headline="UAW official says union creating &quot;chaos&quot; for automakers, leaked messages show" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/19/uaw-strike-shawn-fain-christian-preacher-religion" target="_self">UAW president Shawn Fain</a> about the union&#x27;s strike strategy against Detroit automakers say the UAW is inflicting &quot;reputations damage and operational chaos&quot; at GM, Ford and Stellantis.Why it matters: The messages, in a private group chat on X (formerly Twitter) shine a new light on the union&#x27;s <a class="gtmContentClick" data-vars-link-text="hardball tactics" data-vars-click-url="https://www.axios.com/2023/09/21/uaw-strike-contract-gm-ford-stellantis" data-vars-content-id="f91c2d73-04a6-4d0c-8459-557cab165c03" data-vars-headline="UAW official says union creating &quot;chaos&quot; for automakers, leaked messages show" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/21/uaw-strike-contract-gm-ford-stellantis" target="_self">hardball tactics</a> under a new strategy orchestrated in part by outside labor activists who joined the UAW staff — and Fain&#x27;s inner circle — shortly after his election in March.

Joann Muller

Stories

Ford CEO: UAW "holding the deal hostage" over EV battery plants

UAW expands strike against Ford, General Motors

UAW expands strike against GM and Stellantis

UAW boss Shawn Fain's union tactics, explained

UAW official says union creating "chaos" for automakers, leaked messages show

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