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UAW strike: Is a mediator necessary?

UAW negotiations
Posted at 7:06 PM, Oct 20, 2023
and last updated 2023-10-20 19:06:40-04

WAYNE, Mich. (WXYZ) — As autoworkers mark another day on the picket lines, the United Auto Workers and Detroit's Big Three have yet to strike a deal.

In the last week, Ford's Executive Chair Bill Ford spoke out for the first time since contract talks began. Speaking from the Rouge plant in Dearborn, Ford made a plea to the union to end the strike as the company is unable to sweeten their contract offer any further.

"This should not be Ford vs. the UAW. It should be Ford and the UAW against Toyota, Honda, Tesla and other Chinese automakers," Bill Ford said Monday. "They are loving this strike because they know the longer this goes on, the better it is for them. They will win and all of us will lose."

On Thursday, General Motors Executive Vice President Gerald Johnson addressed employees with more information about what was included in the current offer, clarifying that the wage offer should not be considered "poverty wages." Johnson went on to say the company could not meet all of the union's demands without risking the company's ability to invest in their future.

"We need profits to invest in our future. For example, over the past 10 years, we’ve invested more money in our business than we’ve earned and if we don’t have those profits to continue our investment in our plants, our people and our products, we will be facing declining market share and inability to fund the (electric vehicle) transition," Johnson said Thursday.

Johnson said giving up more in autoworker contracts would also jeopardize their ability to compete with other automakers and would have "devastating" implications for jobs.

Despite that, General Motors sent another offer one day later increasing wage rates by 23% throughout the life of the contract for most employees. They have also agreed to reinstate cost of living allowances for seniority team members. Under the offer, GM plans to increase the basic benefit rate in traditional team member pension plan by 5% for future service among other changes.

In a 4 p.m. address Friday, UAW President Shawn Fain once again called out automakers saying they have more that they can offer to workers. He also made it clear that GM's latest offer was not enough. However, he did not call on additional plants to join the strike.

Workers on the picket line echoed his statements.

"There’s more to go. They spend more money doing less. They should pay their workers what we deserve. We’re not asking for everything, just our share," said John Deshano, who has worked for Ford for nearly 29 years.

Experts believe it could be time to call in a mediator to reach a deal.

"I think we’re at that point that’s crying out for a mediator," University of Michigan professor Erik Gordon said. "One thing: this negotiation has gotten really personal. Shawn Fain has done a lot of name calling. He’s said they worship at the altar of greed. A mediator can calm things down, carry messages from one room to the other."

Gordon says a mediator would make a way for both sides to compromise on their previous non-negotiables. However, he says that mediators cannot come from the federal government as the Biden administration has already backed the union.

"Mediators are trained to work in high-stakes negotiations — negotiations that are emotionally charged. They come in, they’re neutral. They have no dog in the fight," Gordon said.

Gordon says the longer the strike goes on, the more the companies risk losing their business and workers risk job loss.

"I think both sides will end up doing what it takes to reach an agreement because if they don’t, 140,000 UAW workers are going to be without a job and so will the CEOs of the auto companies because the auto companies won’t exist," Gordon said.

Workers say they plan to hold the picket lines until they get the contracts they want.

"We have really given a lot and we’ve been here building the best product we can possibly build," Deshano said. "I feel like the companies should step up and do the just thing and pay us what we deserve."