The biggest union in the American auto industry is on strike, and it could last a while. United Auto Workers began the unprecedented strike against Ford, General Motors and Stellantis (makes Chrysler, Dodge, Jeep and Ram brands) on Friday. This is the first time in history that the union has taken on all three auto giants at once.

Under UAW president Shawn Fain's strategy, around 8% of union workers walked off the job Friday at three auto assembly plants: General Motors in Wentzville, Mo., Stellantis in Toledo, Ohio, and Ford in Wayne, Mich.

Fain’s “Stand Up Strike” innovative approach means instead of striking at all plants at once, select employees at certain locations will be called on to strike. As time goes on without an agreement, more employees will be called on to join the strike. According to the union, this strategy will keep the companies guessing and provide maximum leverage against the Big Three.

New deadline announced

Fain announced in a video on Monday a new strike deadline of Friday, Sept. 22 at noon. If Ford, General Motors or Stellantis have not made substantial progress toward a fair agreement, the UAW will call on more members to join the strike.

“Autoworkers have waited long enough to make things right at the Big Three,” Fain says. “We’re not waiting around, and we’re not messing around. So, noon on Friday, September 22nd is a new deadline.”

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“We’re going to keep hitting the company where we need to, when we need to,” he continues. “And we’re not going to keep waiting around forever while they drag this out.”

What the strike is fighting for

Union demands include 40% pay raises over the next four years that Fain says would align with CEO wage increases. Workers are also fighting for a 32-hour work week, the restoration of pension and retiree healthcare and cost of living adjustments.

“Due to inflation, and auto worker today is making less in real wages than we made 20 years ago,” Fain says. In the past four years, the average cost of a new car is up 34% while auto worker wages have only risen 6%.

Another negotiation priority for the UAW is eliminating the tier system, which places newer hires at lower wages with fewer benefits than long-standing employees. The union is proposing a 90-day progression period for new employees to reach the top of the wage scale.

President Biden voiced his support for union workers on Friday. Biden says auto companies have seen record profits over the last few years, but those record profits haven’t been shared fairly with workers.

“Over generations, auto workers sacrificed so much to keep the industry alive and strong, especially through the economic crisis and the pandemic,” Biden said. “Workers deserve a fair share of the benefits they helped create for an enterprise.”

The Biden administration announced it is dispatching Acting Labor Secretary Julie Su and White House Senior Advisor Gene Sperling to offer their full support for the parties in reaching a contract.

Impact on production, prices

Many analysts agree it will take several weeks before dealer lots start to look empty. The Big Three ramped up production before the contract expiration last week, and the incremental strike means only a portion of production will be affected – for now.

Looking to buy a new vehicle? Don’t panic. Kelly Blue Book analysts explain the strike won’t hit every automaker and it won’t affect every model.

“Dozens of companies sell cars in America, many under several brand names. Only three companies selling under 13 brand names have workers represented by the UAW,” Shawn Tucker of Kelly Blue Book writes.

Tucker says last week’s union walkout stopped the production of eight models:

Of course, as the strike continues, the list could expand. According to a Reuters report, Evercore ISI analyst Chris McNally expects plants that build more profitable pickup trucks like Ford's F-150, GM's Chevrolet Silverado and Stellantis' Ram to be the next strike targets.