About 146,000 U.S. auto workers are set to go on strike this week if General Motors, Ford, and Stellantis do not meet their demands for big wage increases and the reinstatement of concessions given to workers years ago.
Shawn Fain, president of the United Auto Workers union, has threatened to strike at any of the three companies.
The union has demanded a 46% increase in general wages over four years. An increase that would raise a top-level assembly plant worker from $32 an hour to about $47.
In addition, the UAW sought to eliminate different pay levels for factory jobs; 32-hour weeks with 40-hour pay; Restoration of traditional defined-benefit pensions for new employees, who now receive only 401(k)-style retirement plans; and roll back cost-of-living wage increases, along with other benefits.
Perhaps most important for the union is that it be allowed to represent workers at 10 electric vehicle battery factories, most of which are being built by joint ventures between automakers and South Korean battery makers. The union wants those plants to receive top UAW wages. In part, that's because workers who now make components for internal combustion engines will need space to work as the auto industry increasingly moves toward EVs.
What Does the Average UAW Worker Make? Average Wage of UAW Worker
Currently, UAW workers hired after 2007 do not receive a defined benefit pension. Their health benefits are also less generous. For years, the union gave up general wage increases to help companies control costs and lost wage increases to the cost of living.
Although top-level assembly workers make $32.32 an hour, temporary workers start at less than $17. Still, full-time employees have received profit-sharing checks this year ranging from $9,716 at Ford to $14,760 at Stellantis.
The average hourly wage for United Auto Workers in the United States as of 2023 is approximately $27.99.
UAW workers are employed in the motor vehicle and parts manufacturing industry, including union and non-union workers.
While this salary is a good income, it's important to note that it has only increased by 14.8% since 2018, which is still well below the average hourly earnings across all industries in the country, which is now $33.82.
Fenn himself has acknowledged that the union's demands are "bold". But he has argued that unions could significantly raise workers' wages to compensate for the sacrifices unions made to help companies weather the 2007–2009 financial crisis and Great Recession.
Over the past decade, the Detroit Three have emerged as strong profit earners. They have collectively reported net income of $164 billion, up $20 billion this year. The CEOs of all three major automakers earn several million in annual compensation.
A Look at the UAW
The United Auto Workers (UAW) is an influential labor union that has played a pivotal role in shaping the landscape of the American automotive industry and workers' rights. Established in 1935, during the height of the Great Depression, the UAW was born out of the need to address poor working conditions, low wages, and a lack of job security for auto industry employees.
One of the most iconic moments in UAW history is the Flint Sit-Down Strike of 1936-1937. This strike, carried out by UAW members at General Motors plants in Flint, Michigan, marked a turning point in labor relations. Workers occupied the factories, demanding better working conditions and recognition of their union. The strike ended with a victory for the UAW, as GM agreed to negotiate with the union, setting a precedent for the entire industry.
Over the years, the UAW continued to secure better wages, benefits, and job security for auto workers through negotiations and strikes when necessary. They have also been at the forefront of advocating for workplace safety and social justice issues within the automotive industry.
Today, the UAW remains a powerful advocate for workers' rights, representing employees at major automakers such as Ford, General Motors, and Stellantis. It continues to fight for fair wages, job security, and safe working conditions, leaving a lasting legacy as a driving force in labor history.
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