JUANA SUMMERS, HOST:
The United Auto Workers strike has just gotten a lot bigger, and it could soon be affecting a lot more people. That's because the union just expanded the action to warehouses in a way that will quickly ripple out to dealers. And in another big move, the union is also pitting the automakers against each other. NPR's Camila Domonoske joins us to explain. Camila, I understand that the UAW made a big announcement about all of this today. What did they say?
CAMILA DOMONOSKE, BYLINE: Yeah. So they are expanding the strikes against Stellantis - that's the parent company of Chrysler - and General Motors, but not against Ford. And the expansion is specifically to 38 parts distribution centers.
SUMMERS: What do we know about those facilities, and how big of a deal is this?
DOMONOSKE: Yeah. So what we're talking about here are not the huge plants where they make vehicles, which is what went on strike last week and remains on strike. These are parts distribution centers, basically warehouses where the companies ship out parts to dealerships. They're located all over the country 'cause there are dealerships all over the country. This doesn't shut down the whole auto industry, right? Companies can still make cars. These are smaller facilities, but what they do is they feed parts to dealerships when they need to repair vehicles, right? So this will affect drivers who need repairs as soon as their local dealerships run through their local stockpiles.
SUMMERS: OK. And what is the UAW's strategy with all of this?
DOMONOSKE: Yeah. Well, one thing is to hit the automakers in their pocketbooks, right? These things, these warehouses that ship out parts, they are a cash cow for companies. Just today I was listening back to a call that GM did with Credit Suisse a few years ago, and the then-CFO of the company, Dhivya Suryadevara - she said this.
(SOUNDBITE OF ARCHIVED RECORDING)
DHIVYA SURYADEVARA: It is a very important part of our profitability, and it's been consistent.
DOMONOSKE: Consistent - that is, car sales go up, they go down, but there's always money in selling floor mats unless you can't ship them out of the warehouse...
SURYADEVARA: Sure.
DOMONOSKE: ...Obviously, right? These warehouses are smaller. There's fewer employees. That's helpful - you know, the UAW is paying striking employees $500 each week, so this stretches out the strike fund. And it also affects dealers, and dealers might put pressure on companies.
SUMMERS: Earlier, I think I heard you say that they are not striking at more Ford locations. Why is that?
DOMONOSKE: Yeah, Ford is simply giving the union more of what it wants - better cost of living guarantees, job protections if plants close, paying workers at different locations equally. There's still not a deal between the union and Ford. Ford says there are, in fact, significant gaps in between them. But the union is really playing Ford off of their rivals, GM and Stellantis here, saying, look. If you give us what we want, we don't put your centers on strike.
SUMMERS: OK, so it's clear that the UAW is turning up the heat here and that this is a situation that consumers could soon feel acutely. Where do things go from here?
DOMONOSKE: Talks are continuing. The companies are frustrated. GM used the word untenable to describe the demand. Stellantis accused the union of pursuing political agendas. All the companies say they wouldn't be able to compete with nonunionized companies if they met all the union's demands. On the other side of the table, the union says they could add more strikes at any time. Most of the carmakers' plants are still running today, right? This was a big announcement that the UAW announced today. But there's still - you know, the union's keeping some of its powder dry. And, you know, I should note, I try to avoid using military metaphors really casually. But Shawn Fain, who is the president of the UAW - he wore a camo shirt in today's video, so kind of invited that one there.
SUMMERS: I guess. NPR's Camila Domonoske, thank you much.
DOMONOSKE: Thanks, Juana. Transcript provided by NPR, Copyright NPR.
NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
