October 5th 2023.
The Big Three automakers in the U.S.—Ford, General Motors, and Stellantis—are facing difficult times as the United Auto Workers union's strike continues for a third week.
GM released a statement to CBS News expressing their sorrow for the non-union affiliated workers who have been laid off as a result.
"It is unfortunate the UAW's decision to call a strike at GM Lansing Delta Township Assembly continues to have negative ripple effects," the statement read. "The impacted team members are not expected to return until the strike has been resolved. Since we are working under an expired labor agreement, there are no provisions for company-provided sub-pay in this circumstance."
Ford Motor Company has been the closest to coming to a deal, something they made known in a press release on October 3.
"We want to make sure our workers come out of these negotiations with two things – a record contract and a strong future," Jim Farley, Ford's CEO said. "We’ve put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future.”
Ford mentioned that the UAW has been hesitant to agree to the terms due to the joint venture with a Korean company and Chinese technology involved in the yet-to-be-constructed electric vehicle battery plants. UAW President Shawn Fain called the company’s choice “a shameful, barely-veiled threat by Ford to cut jobs.”
Marik Masters, a business professor at Wayne State University in Detroit, believes that if both sides make concessions, a deal could come sooner than expected. The automakers want the union to get workers at EV plants unionized, and the union wants the plants to be run according to UAW guidelines.
Wired took a look at the strikes from a game theory perspective, trying to predict the behavior of both sides. Marc Robinson, who was once an advisor for GM in such situations, said that the automakers should think about the potential moves of the UAW like a game of chess. He predicted that the strike should end by Halloween or Christmas, with Ford Motor Company likely to be the first to finalize negotiations.
For now, however, we will have to wait and see which side is willing to compromise first.
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