The U.S. auto strike has seen a turnaround, GM made concessions, and the union lowered its wage increase demand to 30%

There has been new progress in the US auto industry strike.

On October 6, the United Auto Workers (UAW) reportedly announced a postponement of the expansion of its strike against Detroit's three automakers, citing progress in negotiations, including General Motors' unexpected agreement to include workers at its battery joint venture factory in the union contract.

This strike is the largest in the history of the US auto industry, involving nearly 150,000 UAW members. Prior to this, the UAW put forward a series of demands, including wage increases, restoration of the pension system, and implementation of a 32-hour work week. Initially, the UAW asked the Big Three to increase the wages of its members by 46% over the next four years, which was later reduced to 36%, and now it has been reduced to 30%.

91che believes that this is an important concession made by the UAW in the negotiations, demonstrating its sincerity and expectations for settlement.

On the one hand, the UAW realized that its demands were too harsh and unrealistic, which could make it more difficult for the Big Three, which were already lagging behind in the electrification process, to operate and accelerate the loss of market share. On the other hand, the UAW also saw GM's compromise and cooperation on the battery joint venture issue, which was a positive signal.

In fact, the Big Three did not make no concessions in this strike. According to reports, the Big Three proposed their own solutions, including a 10% salary increase, a one-time bonus, an increase in the minimum wage for temporary workers, and a shortened promotion time for long-term workers. However, these solutions failed to meet the requirements of the UAW, leading to a deadlock in the negotiations.

Last Friday (September 29), the UAW expanded its strike to three assembly plants of the three companies and 38 spare parts distribution centers of General Motors' Stellantis.

This strike is a heavy blow to the U.S. auto industry. According to a report by Anderson Economic Group (AEG), for every 10 working days that the UAW strike against the Big Three lasts, the three automakers will lose nearly $1 billion. Consumers will also be affected by the strike, because car inventories are already very tight, and the strike may quickly affect dealers and consumers.

91che believes that the UAW and the Big Three should reach an agreement acceptable to both parties as soon as possible to end the strike. This is not only to protect their own interests, but also to maintain the overall competitiveness and development prospects of the US auto industry. At present, the global auto market is in a critical period of transformation towards electrification, intelligence and networking. If the US auto industry further misses opportunities due to internal disputes, competitors such as Tesla, BYD and other automakers will seize the opportunity.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.