The UAW says it has “urgent developments” in talks with Detroit automakers

DETROIT, Oct 6 (Reuters) – The United Auto Workers union said on its Facebook page that it has “significant developments in negotiations” before its president is scheduled to speak directly in its strike against automakers in Detroit 3.

The first coordinated strike against General Motors (GM.N), Ford Motor Company (FN) and Chrysler’s parent company Stellantis (STLAM.MI) enters its fourth week. The union, led by president Sean Fine, is pursuing a strategy of intensifying activity against different automakers every week, depending on progress in the talks.

Fain was scheduled to deliver a speech at 2 p.m. EDT (1800 GMT) to detail updates to the deal, but the event didn’t start 10 minutes into the hour, people familiar with the UAW’s plans said.

People familiar with bargaining between the UAW and automakers in Detroit said talks intensified this week after days of limited movement.

Fine has kept automakers in suspense over whether he would order additional plants to close, or give the automaker a pass because it made concessions. So far, the union has ordered strikes at five assembly plants and 38 parts warehouses operated by General Motors and Stellantis.

On Friday, before the updates, he said the fight for better contracts is about more than just auto workers.

“This is the entire working class,” he said at an economic event in Detroit, criticizing the lack of benefits for many workers. “It’s a shame as a nation.”

Ford, General Motors and Stellantis have put forward new proposals in an attempt to end the cycle of escalating strikes that threaten to erode profits and cripple small suppliers already strained by months of production cuts forced by a semiconductor shortage.

Pressure is mounting on the three automakers as electric vehicle market leader Tesla Inc (TSLA.O) cuts U.S. prices for its Model 3 sedan and Model Y SUV, escalating the price war and increasing pressure on profits across the board. Electric car models that have to match the CEO. Elon Musk’s aggressiveness.

Deutsche Bank estimated in a research note on Friday that the hit to operating profits at GM, Ford and Stellantis from the loss of production amounted to $408 million, $250 million and $230 million, respectively.

Ford said its latest pay offer would provide more than 20% increases over the life of the contract. Combined with the proposed cost-of-living adjustments, workers could see a pay increase of about 30%, people familiar with the proposal said.

Fine’s video addresses on Friday have become must-see events since he launched coordinated strikes on General Motors, Ford and Stellantis plants shortly after midnight on September 15.

Friday afternoon’s speech was a departure from the previous two Fridays in which Fine addressed union members in the morning and ordered a strike at the three additional Detroit plants to begin at noon.

Fine stopped by Ford on Friday in which he called for strikes against parts warehouses.

Last Friday, Fine called off a planned strike at the Stellantis assembly plant after the carmaker presented new proposals minutes before the scheduled start of his talk.

Friday’s monthly US jobs report showed no impact from the strike, likely because it started too late in September to be included in government surveys, but it could impact the October report if the strike extends into next week, when the Labor Department conducts its survey. For job workers. Next release.

In other labor talks involving the Detroit Three, the union representing hourly workers in Canada, Unifor, faces a deadline of 1159pm ET on Monday to reach a new deal with GM. Unifor represents about 4,300 GM workers covered by these conversations.

Unifor struck a deal with Ford last month, although it barely passed with 54% of members voting in favour.

Our standards: Thomson Reuters Trust Principles.