From CHRO Solutions: UAW Bargaining Update

Our Strategic Partner, CHRO Solutions shared a UAW bargaining update today. Please read below from CHRO Solutions Founder, Eric Torigian:

There has not been a lot of material change as we close out the first full week of these new UAW Standup Strikes.    UAW President Fain has set a deadline for Noon (EST) on Friday Sept 22 to take deeper actions if the stalemate continues.   I would expect him to hold another Facebook live town hall and will share any meaningful insights as that deadline plays out.

The federal government has the Secretary of Labor involved and they are ‘in contact’ with both sides.

These rolling outage strikes are having an impact on key Detroit 3 plants but the disruption in the supply base has been limited but growing as more suppliers begin layoffs and consider their ability to stay in business.  Some suppliers are exploring other non-automotive customers.   It is an interesting approach as it has caused economic distress for the OEM’s and inefficiencies for the suppliers but has not caused mass layoffs.    What I find interesting is this approach is not hurting the average worker and will aid in organizing in the future.  Also interesting is that in many cases releases have increased.  This could single an inventory build to brace for a longer-term event.

What Should You be Doing and How Can I Help

CHRO Solutions Recommendations and  Approach:

I am recommending the following immediate steps for all my clients:

  1. Hold leadership training sessions for frontline supervisors and manager
  2. Labor Relations 101 for all frontline supervisors and managers
  3. Complete vulnerability assessment for all non-union and union locations to understand risk
  4. Understand mission critical processes, operations and identify key people – update your succession plan
  5. Perform a Leadership Maturity Assessment to understand where you stand and where you have risk
  6. Build a layoff response plan should you have to react to the shutdowns.  This needs to include information packages for impacted employees and talk to them about what could happen
  7. Build a layoff return plan.   This plan needs to look at the teams, who do we want back, where can we clear the baffles, etc.
  8. Build a union negotiations plan for unionized locations.  What is the current agreement status, when is bargaining and how do you insulate from the impact of these audacious demands

Additional Details: 

Impacted Locations

The UAW initially targeted locations running key products and surprisingly they did not target any component plants.

GM:                       Wentzville, Missouri – Midsized Truck and full-sized van

Ford:                      Wayne, Michigan – Ranger and Bronco SUV

Stellantis:             Toledo, Ohio – Wrangler and Gladiator

I do not have much of a best guess on who will be next up.  From statements made by the UAW leadership, I do expect to see some component plants on the list.

Key UAW Demands

  • 36% increase over life of contract
  • 32 hour workweek
  • Reinstatement of traditional pensions
  • Elimination of Tiers
  • Restoration of COLA

OEM Offers (rough estimate and averages)

  • 21% increase over life of contract (Stellantis is offering 10% immediate increase)
  • Retention of health care
  • Elimination of Tiers
  • Reduction of Grow-in

Additional Resources:

Overview of the current situation: UAW Strike Impact on NA Supply Chain

How to manage the impact in your business:   Managing during Chaotic Times

Details on the UAW Stand-up strike for members: UAW Standup Strikes

Current situation economic impact on Auto Industry: Wells Fargo’s Colin Langan on CNBC