Several types of horse feathers are dominating media coverage of the United Auto Workers’ unprecedented strike against plants of all three major U.S.-based automakers at once. The fundamental matter at issue, however, is the huge differential between what U.S., European and Japanese autoworkers used to make—represented by the $32/hour average wages and defined-benefit pensions of the workers who remain in Ford, GM, Stellantis and parts plants since before 2009—and what they make now, as represented in the United States by the average $19-20/hour and 401(k) pensions of those who have been hired since then. Any look at the UAW picketers’ signs before and during the first days of the strike, shows that trying to close this gap is the union’s primary concern. The automakers have thus far tried to ignore this “no tiers” demand, instead offering to raise pay by about 20% over four years, not even a catch-up for the past four years’ inflation, let alone the next four.
The U.S. Census Bureau reported Sept. 12 that real household income in the United States had dropped for three consecutive years from 2020-22, and by a total of 5% over those three years. The drop in median real household income was from $78,350 in 2019 to $74,580 in 2022; and there was a 2.3% drop in 2022. The typical “Tier 2” UAW member in a U.S. household has a second job in addition to working full-time in an auto or parts plant. alone.
According to the media, however, an alleged “electric vehicle revolution” supposedly spreading from Europe, and/or the lower wages paid by big non-union carmakers operating in the United States, are the big issues. In the first place, wages are about 5% of auto production costs, as UAW President Shawn Fain countered “Face the Nation” host Margaret Brennan Sunday morning, Sept. 17, and the “Big Three” automakers have become highly profitable in recent years; they can raise real wages and still make big profits. And secondly, the vast majority of electric autos sold internationally are made by Tesla and China’s BYD, not European or major U.S. carmakers, and are in any case too expensive to cut into the sales of fossil fueled automobiles in the United States.
Interestingly, both Fain and Michigan Democrat Rep. Debbie Dingell on the same talk show dismissed President Joe Biden’s much-publicized verbal support for the strikers on Sept. 16. Dingell, who is influential in the auto industry and the unions, said that she wanted to keep the issues of, and support for, the UAW strike “completely separate from presidential politics,” even though Brennan—as she had with Fain—was virtually demanding that Dingell pronounce Biden’s support to be of great significance. Biden’s low standing even with Democrats was in clear view.
