(Bloomberg) — General Motors Co. and Stellantis Inc. are facing strikes at 38 other plants amid a lack of progress in talks with a labor union, while Ford Motor Co. has weathered an escalation after making progress in negotiations.
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UAW President Sean Fine announced Friday in a news conference broadcast live on Facebook that the union will go after all GM and Stellantis parts factories. The additional pauses are intended to increase pressure on companies as they negotiate a new employment contract.
“We will shut down parts distribution until these two companies come to their senses and come to the table with a serious offer,” Fine said. “Stellantis and GM in particular will need a big boost.”
The UAW is targeting custom service operators GM and Stellantis as a way to pressure them to make more concessions without impacting plants that produce higher-margin vehicles. Faced with a shortage of spare parts, vehicle owners will have to wait longer for their vehicles to be repaired and dealerships will lose service revenue.
Stellantis and GM did not immediately respond to a request for comment.
A week of strikes
A week ago, the union ordered strikes at a General Motors plant in Missouri that assembles Chevrolet Colorado pickup trucks, a Stellantis plant in Ohio that makes Jeep Wrangler SUVs, and a Ford plant in Michigan that makes Bronco SUVs.
The strike against the Ford plant in Michigan will not expand for now, Fine said, adding that talks with the automaker have seen “some real progress.” He congratulated the automaker on officially reinstating the cost of living subsidy that was suspended in 2009.
Ford welcomed the union leaders’ signal, but noted that there was still much to be done before an agreement could be reached.
“While we are making progress in some areas, we still have important gaps to close on key economic issues,” the company said in a statement following Fein’s comments. “The issues are interconnected and must work within a comprehensive agreement that supports our mutual success.”
For GM and Stellantis, the news was less encouraging. The 38 parts facilities represent all of the two companies’ parts distribution centers in the United States.
“A parts factory strike could force dealers to run out of parts immediately, as supply chain issues have already left many components back on order,” said Sam Fiorani, vice president of forecasting at AutoForecast Solutions.
Additional GM and Stellantis plants will be affected by the strike, which begins at 12 noon local time on Friday, Fine said.
Translated by Paulina Moneta.
Original Note: GM and Stellantis face 38 more UAW exits as Ford bails out (1)
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