auto parts maker magna may do layoffs in case of labor strike
Tensions have risen in contract talks between the United Auto Workers (UAW) union and Stellantis, an automotive company.
UAW President Shawn Fain accused Stellantis of seeking concessions in contract negotiations when the union was looking for improvements. The threat of a strike in September looms over these talks.
The UAW is seeking over 40% general pay raises over four years, restoring pensions for new hires, cost-of-living increases, ending wage tiers, and other benefits. However, Stellantis has reportedly not upheld its pledge to avoid seeking givebacks in these discussions.
This situation has increased the possibility of a strike. The UAW has contracts with General Motors, Ford, and Stellantis, all set to expire in mid-September. UAW President Fain has encouraged workers to be prepared to strike to achieve significant gains.
While tensions are high with Stellantis, the UAW hasn’t singled out any company as a strike target and could potentially choose all three automakers for a strike.
The automotive industry is undergoing changes as it shifts from internal combustion engines to electric vehicles. The UAW sees this contract negotiation as an opportunity to secure representation for its workers in this changing landscape.
Stellantis, General Motors, and Ford have invested in US manufacturing and electric vehicles. The union believes that wages have remained stagnant for too long, given the concessions made during the Great Recession.
The negotiations’ may impact over 146,000 workers’ wages, pensions, and working conditions in these three automakers.
The 2 companies, Canadian auto-parts maker company ‘Magna International’ and a part supplier ‘Aptiv PLC’, are also preparing for potential labor disruptions. They are considering adjustments to their operations in case of workers’ strike continuation.