Major strike in the auto industry: three US factories are shut down, why the Gulf states are becoming global cash machines

In a first step of its kind, the UAW union will simultaneously strike at factories of the major American car manufacturers General Motors, Ford and Stellantis. The work stoppages began on Friday evening after the deadline for collective bargaining passed.

The strike began Friday evening (local time) at the GM plant in Missouri, a Stellantis plant in Ohio and a Ford plant in Michigan. The work stoppages affect several popular models, such as the Jeep Wrangler.

The labor dispute also poses a dilemma for President Joe Biden: He has traditionally been very pro-union, but a setback for the U.S. economy could dim his hopes of re-election in just over a year. A prolonged nationwide strike in the auto industry could have a significant impact on the U.S. economy.

UAW President Shawn Fain said before the work stoppage that strikes would begin at a General Motors plant in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford plant in Wayne, Michigan. Depending on how negotiations go, there could be further work stoppages at other locations, it said.

36 percent higher wages in four years

The union with around 150,000 members is demanding salary increases of 36 percent over four years. According to the union boss, employers have not yet gone beyond 20 percent. They also refused to grant additional vacation days and increase pensions, which are guaranteed by company funds.

“We have told companies from the beginning that September 14 at midnight is a deadline,” UAW President Shawn Fain said in a YouTube video, as the French news agency AFP wrote on Thursday. “We will not allow the Big Three to continue to delay talks for months,” Fain said. (sda/afp/dpa)