Industryweek 6089 Uaw Logo 1

Detroit Three Gird for Labor Clash as UAW Hikes Strike Pay

March 12, 2019
The compensation would cushion the financial blow to UAW members if they decide to walk off the job, and serves as a warning shot to automakers that union workers are prepared for tough negotiations.

The United Auto Workers is increasing strike pay for members, a move that could give workers more incentive to stay on picket lines if there’s a walkout during potentially contentious negotiations with Detroit Three carmakers this year.

At the union’s bargaining convention starting Monday in Detroit, UAW President Gary Jones said strike pay will increase to $250 a week through the end of this year, from $200 a week previously. The union will start paying out to $275 a week starting in January.

The compensation would cushion the financial blow to UAW members if they decide to walk off the job, and serves as a warning shot to automakers that union workers are prepared for tough negotiations. General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV are slated to negotiate new four-year labor deals beginning this summer.

“No one goes to the bargaining table expecting to strike,” Jones said. “But the UAW goes to the bargaining table prepared to strike if our members need to strike. We don’t fear it. Raising the strike fund is an important symbol that we have their backs.”

The union last went on strike in 2007, when workers briefly walked out on both GM and what was then DaimlerChrysler. The UAW has seen its clout wane in recent years after failed bids to unionize U.S. plants run by Nissan Motor Co. and Volkswagen AG. It’s also been set back by an ongoing Justice Department probe into illicit payments funneled through a worker training center to union leaders and Fiat Chrysler labor-relations executives.

By David Welch and Gabrielle Coppola, Bloomberg

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!