US Auto Workers set to Expand Strike

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Even after escalating its strike against Detroit automakers on Friday, the United Auto Workers union still has plenty of leverage in its effort to force the companies to agree to significant increases in pay and benefits.

Only about 12% of the union's membership is so far taking part in the walkout. The UAW could, if it chose to, vastly expand the number of workers who could strike assembly plants and parts facilities of General Motors, Ford and Stellantis, the owner of the Jeep and Ram brands.

Yet the UAW's emerging strategy also carries risks for the union. By expanding its strike from three large auto assembly plants to all 38 parts distribution centers of GM and Ford, the UAW risks angering people who might be unable to have their vehicles repaired at service centers that lack parts.

The union's thinking appears to be that, by striking both vehicle production and parts facilities, it will force automakers to negotiate a relatively quick end to the strike, now in its second week. To do so, though, some analysts say the union might have to act even more aggressively.

"We believe the next step for UAW is the more nuclear option — going for a much more widespread strike on the core plants in and around Detroit," said Daniel Ives, an analyst with Wedbush Securities. "That would be a torpedo."

Sam Abuelsamid, an analyst at the consulting firm Guidehouse Insights, suggested that with so many workers and factories still running, the union has a number of options with which to squeeze the companies harder.

"They could add more assembly plants to the list," Abuelsamid said. "They could target more of the plants that are building the most profitable vehicles."

As examples, he mentioned a plant in Flint, Michigan, where GM builds heavy-duty pickups, and a Stellantis factory in Sterling Heights, Michigan, that produces Ram trucks.

All three companies said that talks with the union continued on Saturday, though officials said they expected no major announcements.