Policy Backgrounders

Update: US Auto Workers Strike at Big Three

September 22, 2023

US auto workers in the United Auto Workers (UAW) initiated a strike on Friday, September 15, at the expiration of contracts with Detroit’s Big Three automakers.

• The initial strike that began Friday has affected 12,700 workers across three US plants, while the UAW has announced a new deadline of noon Friday, September 22, for strikes at additional facilities if negotiations do not make progress.
• Following high auto company profits over the pandemic and stagnant compensation since the 2008 financial crisis, the union demands substantial increases to wages and benefits, in addition to structural changes on tiering of employees, retiree medical benefits, and union representation at new battery plants.
• The automakers have pushed back significantly, offering roughly half the pay raise demanded by UAW over the life of the contract and rejecting changes that would raise structural costs. Meeting the union’s demand in full could potentially reduce the Big Three’s operating margins in 2026 by one-third.
• The negotiations also reflect tensions in implementing federal initiatives focusing on domestic production while maintaining high-quality jobs, as automakers face increasing cost pressures in their shift towards launching electric vehicle (EV) fleets.
• A separate strike threatened by Canada’s Unifor auto worker union was narrowly avoided late Tuesday with a tentative agreement struck with Ford. While details are not yet available, the agreement is a positive sign for UAW negotiations, as the unions shared similar contract demands.