United Auto Workers at the three major auto makers won't walk out en masse tomorrow when their contracts expire at midnight tonight, but enough workers will at targeted locations to ensure operations will be slowed significantly or stopped. The workers are pushing the auto makers for an increase in wages over four years commensurate with the increase in salaries of the top executives, for traditional pension plans for newer workers, and for other enhancements to their current contract. From CNN:
"UAW President Shawn Fain on Wednesday evening announced plans for those targeted strikes at any company that fails to reach a labor deal with the union before contracts expire at 11:59 pm Thursday.
Fain suggested the strategy, including the possibility of ramping up strikes as negotiating continues, would give the UAW more leverage with the automakers, saying: 'We have the power to keep escalating and keep taking plants out.'
But it’s very possible the companies will be shutting down the plants themselves, complicating the union’s plans for leverage and squeezing members with the potential for more financial hardship. [snip]
One advantage for the union of a targeted strike is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund.
If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund.
With targeted strikes, it’s possible that the companies will shut down operations and lay off members who are not technically on strike. That could make them eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources. But there are legal questions about qualifying for unemployment." (our emphasis)
From UAW's standpoint, this strategy make sense for a long term work stoppage. The three major auto makers stand to lose billions in a nationwide shutdown when demand is rising and foreign, non-union made cars are available. There doesn't seem to be much optimism for a deal before tonight's deadline on the part of the UAW or the companies, either.
