By David Shepardson and Joseph White
DETROIT (Reuters) -The United Auto Workers are set to expand their strike of Detroit Three factories and walk off the job at one additional assembly plant at General Motors, Ford and Stellantis, three sources familiar with the matter said Friday.
The plans are fluid and could change at any time, the sources said. The UAW declined comment.
UAW President Shawn Fain began his video address about a half-hour late on Friday, saying the union had received a “flurry” of interest from the companies on Friday morning.
On Thursday, the union made a counter-proposal to Stellantis. Talks among the UAW and negotiators for the Detroit Three were described as “very active” by one person briefed on the situation.
The UAW is expected to continue work stoppages currently under way until a new contract is ratified, a source familiar with the situation said, speaking on condition of anonymity.
The strike is now entering its third week as the autoworkers push for higher wages and benefits and the elimination of a tiered standard that pays newer workers far less.
Automakers say the union’s demands would hurt their profits as they try to compete with nonunion manufacturers like Tesla.
The union escalated the initial strike on Sept. 22, when workers walked off the job at General Motors and Stellantis distribution facilities in 20 states nationwide. It began on Sept. 15, when workers struck at one plant each from GM, Ford and Stellantis. The UAW did not strike at Ford distribution facilities, citing progress in talks with that company.
Headed into Friday, about 18,300 UAW members at the Detroit Three were on strike, or about 12% of the 146,000 union members working at the automakers. Strikers have been getting $500 a week from the UAW’s strike fund.
The union previously shut one assembly plant at each of the Detroit Three, and 38 parts distribution centers at GM and Stellantis.
Ford shares rose 0.4% and GM shares were down 0.2% in trading Friday. Stellantis shares gained 0.6% in trading in Milan.
The effect of these walkouts has been relatively limited compared to the financial hit from halting assembly lines that build Ford F-series, Chevy Silverados and Ram trucks.
Analysts estimate GM, Ford and Stellantis earn as much as $15,000 per vehicle on each of their respective large pickup truck models.
The UAW has taken a new approach with walkouts to turn up pressure on the automakers. Rather than the hammer blow of a mass walkout, the UAW has used strikes like a ratchet, keeping company executives guessing where the next turn would come.
The union expanded its strikes against GM and Stellantis, but kept its Ford walkout limited to a single plant due to progress in those talks.
The union and the companies remain far apart on key economic issues. Fain has stuck with a demand for 40% pay hikes over a four-year contract, a position supported by President Joe Biden during a visit to Detroit on Tuesday. The companies have countered with offers of about 20%.
The UAW also is pushing automakers to eliminate the two-tier wage system, under which new hires can earn far less than veterans.
(Reporting by David Shepardson and Joseph WhiteEditing by Nick Zieminski)
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