The Shadow of the Strike Looms Over Detroit

The threat of a general strike among the top three American automakers has already cast a shadow over the press unveiling at the Detroit Auto Show.

And what if the strike was ultimately not just a uniquely French phenomenon? Tonight at midnight American time, 04:00 Friday in France, the collective agreements of the “Big Three” will expire. These three leading American manufacturers—Ford, General Motors, and Stellantis (owner of Dodge Chrysler)—will then face the threat of widespread industrial action. The all-powerful United Auto Workers (UAW) union is indeed threatening an immediate work stoppage if no satisfactory agreement is reached. “We are preparing for a strike in these companies unlike anything seen before,” warned Shawn Fain, the union president, on Wednesday.

A transition lacking rhythm

Joe Biden tirelessly reiterated his ambition that by 2030, half of the cars sold in the United States will be zero-emission (electric or hydrogen) or low-emission (plug-in hybrids). Like in Europe, the market is under threat from Asian imports, as manufacturers, particularly Chinese ones, already hold a significant lead on this front compared to Western automakers. Trailing manufacturers and pressured workers—these are the ingredients of a potential disaster scenario.

The union is demanding notably a 40% salary increase, matching the levels granted to executives in recent years, which has logically ignited workers’ fury as they are eager to see their employer cut costs.

Ford CEO Jim Farley attempted to defuse the social bomb early this week by stating that the automaker had made the UAW its “most generous” offer in the past 80 years. It includes salary increases, inflation protection measures, 17 paid vacation days, and higher contributions for retirement. However, there was nothing on the highly controversial requests for negotiations on a 32-hour workweek and/or a four-day working week.

The threat of a historic strike

Evidence that a favorable outcome is unlikely, the UAW has already announced a rally in downtown Detroit on Friday with Senator Bernie Sanders, a supporter of the radical left and a passionate union advocate. Workers are also invited to block all access points to production sites “without violence and without alcohol,” according to union instructions.

The Detroit Auto Show, of course, is just a dust speck amid the whirlwind of protests, but it is clear that it cannot avoid some actions, as the media spotlight it offers is far too tempting. Regardless of how the conflict unfolds, the celebration is already ruined because exhibitors will be forced to remain extremely discreet. The era of champagne and glitter is over.

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