Once upon a time, the negotiations between negotiations the United Auto Workers and Detroit automakers were locked down, at least in terms of public statements.
The union and the negotiators for General Motors Co., Ford Motor Co., and the former Chrysler Corp. (now part of Stellantis) didn’t say much during contract talks. There were certain ceremonies.
The UAW would meet with each of the three companies. There were (rehearsed) ceremonies with union negotiators performing handshakes with their company counterparts. The automakers would stay quiet until new contracts were reached and ratified.
That’s yesteryear’s news. With this year’s UAW talks, there were no handshakes. Union president Shawn Fein said he would not shake hands with company representatives until there were contract agreements.
Don’t count on such handshakes, much less contract agreements, happening soon.
Previously, the UAW and the companies had a tacit understanding. The UAW would select one of the automakers to concentrate on negotiation efforts. The union would select one company as the “target,” company and then try to extend the basic terms to the other two.
This time out, the UAW hasn’t reached a contract agreement with any of the three automakers. The UAW has gone on strike at some factories at all three companies at the same time.
In 2023, there is a lot more transparency in the negotiation process. Still, there has an been an impact from such transparency. Until all this gets settled, auto suppliers and auto dealers are watching nervously from the sidelines.
The UAW, under Fein, has made public attacks against companies. In turn, the automakers have returned fire.
The UAW first went on strike at 11:59 p.m. on Sept. 14. The union walked off the job at plants at all three companies. But, on Sept. 22, the UAW spared Ford while adding operations for GM and Stellantis. Supposedly, Ford had made progress in its talks.
On Sep. 29, the UAW expanded its strike against GM and Ford while giving Stellantis a reprieve.
In any event, when you go public, your opponent will also go public.
Ford held a webinar early in the afternoon of Sept. 29. It took aim at Fein’s media strategy.
CEO Jim Farley of Ford declared that the UAW chief has been on television “more than Jake at State Farm,” a reference to the insurance company’s mascot on TV commercials.
“We can’t build vehicles without the UAW,” Farley said. “It’s going to take compromise.”
GM CEO Mary Barra issued a similar statement as reported by the Detroit Free Press: Barra said the UAW sought “to drag their membership into a long, unnecessary strike to further their own personal and political agendas.”
As noted before, this give-and-take used to take place behind closed doors.
This time out, the drama is taking place in public. The Detroit-based UAW has repeatedly attacked the companies. That has spurred the automakers to respond likewise.
What happens next? We’ll see. But the conclusion, whenever that happens, likely won’t resemble other endings of previous negotiations. There is a new dynamic going forward.
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