The United Auto Workers (UAW) union is preparing for targeted strikes as a September 14 deadline to reach a new collective agreement with the major U.S. automakers approaches.
Contract talks between the UAW and General Motors (GM), Ford Motor Co. (F) and Stellantis (STLA) continue ahead of a deadline of 11:59 p.m. Eastern time on September 14.
However, the union is preparing its 146,000 members to begin holding targeted strikes that could disrupt production at the automotive companies should a deal fail to be reached by the deadline.
Targeted strikes refer to work stoppages at certain manufacturing plants involving local contract issues. Targeted strikes are viewed as less damaging than national strikes where all union members stop working.
Targeted strikes can also save the union money as it won’t have to give strike pay to as many members from its $825 million U.S. strike fund.
UAW President Shawn Fain is expected to outline the strike strategy to the entire union later today (September 13).
The UAW has demanded pay raises for its membership of more than 30%. The automakers offered pay increases of 16%, which Fain has called “insulting.”