. The negotiations will determine the balance of power between workers and management, possibly for years to come. That makes the strike as much a struggle for the industry’s future as it is about wages, benefits and working conditions.
“The transition to EVs is dominating every bit of this discussion,” said John Casesa, senior managing director at investment firm Guggenheim Partners who previously headed strategy at Ford Motor. Union demands would force Ford to scrap its investments in electric vehicles, Jim Farley, the company’s CEO, said in an interview Friday. “We want to actually have a conversation about a sustainable future,” he said, “not one that forces us to choose between going out of business and rewarding our workers.”
“The UAW is really taking a stand for communities across the country to make sure this transition benefits everybody,” Janis added. On Thursday, in a sign that automakers are willing to go much further than they had previously, GM offered a 20 per cent pay raise over four years. That is half of what the union is seeking but far more than workers received in recent contracts. President Joe Biden on Friday strongly supported the union in remarks at the White House. The administration has been pouring billions into programs to promote electric vehicles and does not want a strike to delay a centrepiece of its climate policy.
Still, unions and their supporters are unlikely to express much sympathy for auto executives. Barra, Farley of Ford and the CEO of Stellantis, Carlos Tavares, have gotten tens of millions of dollars in compensation packages in recent years. The companies’ shareholders have been rewarded with dividends and share buybacks.