The strike of the three major car companies in the United States is imminent, and the union may start from the 'weakness' of the automakers.

$Tesla (TSLA.US)$ On September 14th, a 'black swan' may impact the US stock market and even the entire US economy.

Thursday, September 14th is the final deadline for the United Automobile Workers (UAW) to threaten a strike at the three major car companies in Detroit.

On Wednesday, UAW President Fain stated that Ford Motor is proposing a 20% wage increase, while General Motors is proposing an 18% increase, and Stellantis is proposing a 17.5% increase. The wage increase proposals from these three major car manufacturers differ significantly from the wage increase proposed by the UAW.

Fain stated:

In terms of labor contract negotiations, we still have very significant differences of opinion. Stellantis even hopes to have the right to close and sell 18 factories without a vote from the factory workers.

This could be the first simultaneous strike in the history of the three major American car manufacturers in Detroit.

Fain stated:

We have not yet made an offer that reflects the sacrifices and contributions our members have made to these companies. In order to win, we may have to take action. We are preparing to strike back at these companies in ways they have never seen before.

However, Fain stated:

We will not appear en masse (at all facilities) with a comprehensive floral strike. In the initial stages, we will selectively strike in a few facilities. However, it is still possible that all factories will go on strike simultaneously, which would be an unprecedented event.

Fain said that the goal of targeted strikes is to reach a fair labor agreement for the members.

But if these companies continue to engage in malicious bargaining or continue to delay or provide us with insulting quotes, then our strikes will continue to intensify.

UAW will announce several strike targets at 10:00 PM Eastern Time on September 14th. The current labor contract of UAW will expire at midnight tomorrow Eastern Time.

Fain said that UAW will not extend the existing labor contract.

UAW reduced the wage increase from 40% (46% after compounded salary increase) to 36%. Fain said the union proposed reaching the maximum wage level within 90 days and restoring retirement pensions and healthcare benefits for all workers. He said that the three companies agreed to shorten the period of full wages to four years. The three automakers have rejected proposals for retirement pensions and healthcare for workers hired after 2007.

The first place where the union launched the strike may be the weakest link in the automotive supply chain.
Marick Masters, a business professor at Wayne State University in Detroit, said that strike might initially occur at the parts factories of pickup trucks and large SUVs. Masters believes:

The union is trying to make it difficult for the companies and exert increasing pressure on them to encourage them to make offers that ordinary employees can accept and further meet the union's demands.

He said that it makes sense for UAW to target the weakest link in the supply chain.

The union will seek to close as many component production facilities as possible. This strategy will force the company to lay off workers at assembly plants, who will receive unemployment benefits instead of funds from the union strike fund.

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Big strike! It's happening tomorrow.