America’s big car firms face lengthy strikes

THE car industry faces unprecedented upheaval as the importance of the internal combustion engine, which has defined it for more than a century, declines – and that of battery power, which will define its future, rises. The latest reverberation of this historic shock is now rippling through the four-yearly contract negotiations between Detroit’s Big Three carmakers and its biggest trade union.

On Sep 15, for the first time, members of the United Auto Workers (UAW) began simultaneous industrial action against Chrysler, General Motors (GM) and Ford. The union’s tactical change foreshadows a protracted stand-off, the stakes of which are high for the union and the carmakers alike.

In the past, the UAW renegotiated its contract with one of the Big Three, with the other two usually falling into line with any agreements. In 2019 the renegotiation happened at GM, which reached a deal with the union only after a six-week strike by 48,000 workers had cut production by 300,000 vehicles, costing the company US$3.6 billion in net profit.