The United Auto Workers union and three Detroit automakers on Saturday resumed negotiations on a new labor contract as a targeted strike entered its second day.
The union is striking against all three manufacturers – General Motors, Ford and Stellantis – but so far the work stoppages have been limited to one plant at each of the companies: a Ford plant in Michigan, a of GM in Missouri and a Stellantis plant in Ohio.
“We had a reasonably productive conversation with Ford today,” the union said in a statement. It did not mention its talks with GM and Stellantis.
On Friday, Ford said it had told 600 workers who were not part of the strike not to report to work, and GM said the work stoppage could force it to lay off about 2,000 workers at a plant in Kansas which obtains parts from the Missouri factory.
In a statement Saturday, UAW president Shawn Fain said the automakers’ hints of possible layoffs were intended to “force our membership to settle for less” than the union is demanding.
“With their record revenue, they don’t need to lay off an employee,” he said.
The union is seeking substantial wage increases, expansion of pension plans to cover all workers, company-paid retiree health care and shorter work weeks. It also seeks to end the “tiered” wage system where new hires start at more than half the average union wage and have to work eight years before reaching the top level.
In its initial list of demands, the UAW called for a 40 percent wage increase, which it says matches the average pay increase the three companies’ chief executives have gotten over the past four years.
On Saturday, Stellantis — the parent of Chrysler, Dodge, Jeep, and Ram — said its latest offer provided an immediate 10 percent raise and additional raises that would increase wages by a total of 21 percent over the life of the new contract, which is usually four years.
The company also said it offered to allow wage adjustments based on inflation. Under its proposal, new hires would advance to the top wage — currently $32 an hour — over four years instead of eight. Temporary workers, who now make $16.67 an hour, will move to about $21 an hour, Stellantis said.
“It’s a very fair, highly competitive offer,” Mark Stewart, chief operating officer of Stellantis’ North American division, said on a conference call.
“We clearly understand that we are in an inflationary environment,” Mr. Stewart said. “We understand that we need to make changes to reflect what has happened since the last contract.” At the same time, he continued, the company must ensure it can compete with rivals that operate nonunion plants, including Tesla and foreign automakers such as Toyota, Honda and Volkswagen.
“We need to have a viable industry,” Mr. Stewart said. “At the end of the day, we have to compete.”
GM and Ford made similar wage offers and reduced the maximum wage increase to four years, but all three companies rejected many of the union’s other demands related to pensions, health care health, and job security.
Mr. Stewart also said Stellantis had made a proposal to provide “job security” for about 1,350 people who lost their jobs earlier this year when Stellantis idled a plant in Belvidere, Ill. He declined to elaborate on the company’s offer and would not say whether it included having the Belvidere plant produce new cars, a move that would signal its plan to fully reopen the factory.
That offer only remained on the table until the strike began, however.
Reopening the Belvidere plant is one of Mr. Fain’s most important goals. He was elected to his position earlier this year on a promise to take a tougher and more confrontational approach than his predecessors.
Four years ago, the UAW went on strike for 40 days against GM and hoped to push the company to reopen a plant in Lordstown, Ohio, that GM had tagged for closure. Ultimately, the union agreed to a settlement that allowed the company to close the factory.
