KOKOMO, Ind. — Thousands of union autoworkers across Indiana are preparing for the possibility of a strike as early as next week.
The UAW — the United Automobile, Aerospace and Agricultural Implement Workers of America — and the "Big Three" automakers — Chrysler, Ford and General Motors — are negotiating a new contract that expires Sept. 14. Last month, union members voted to authorize a strike if the two sides can’t reach a deal.
The union wants a 46% pay hike, a 23-hour workweek with pay for 40, and restoration of pension benefits.
The automakers, which are making billions in profits, have dismissed the UAW’s wish list. They argue its demands are unrealistic at a time of fierce competition from Tesla and lower-wage foreign automakers as the world shifts from internal combustion engines to electric vehicles.
Indiana impact
According to GM, there are more than 6,000 people who work in manufacturing facilities in Indiana. More than 4,000 work at the Fort Wayne assembly plant. Other locations include Bedford, Marion and Kokomo.
According to its website, about 7,000 people in Indiana work for Stellantis.
What would a strike mean?
The wide gulf between the sides could mean a strike against one or more of the automakers, which could send already-inflated vehicle prices even higher.
If a strike lasts more than a couple of weeks, analysts said it could mean fewer cars on dealership lots at a time when some inventories are already tight.
The other issue dealerships are concerned about is parts inventory. One local dealership executive told 13News if parts depot warehouses are affected, service departments could run out of parts, affecting day-to-day operations.
Rich Letourneau, bargaining chairman for UAW Local 2209, said without a tentative agreement that addresses the issues they’ve raised, he doubts union members will ratify a new contract. He said 97% of the Fort Wayne plant’s 4,300 employees voted to authorize a strike, if necessary.
A woman who answered the phone at UAW Local 685 in Kokomo told 13News that both sides worked all weekend at the national level and, to her, no news is good news because it means talks haven’t broken down.