[News Figures] Sean Payne, UAW Chair Leading the Auto Strike Shaking the US Presidential Election

Term Started Last March...Hardliners Ready to Strike
"Key Figure in US Economy May Influence Next Year's Election"

The United Auto Workers (UAW), which had been negotiating collectively with the three Detroit-based American automakers General Motors (GM), Ford, and Stellantis, launched a full-scale strike on the 15th (local time), the day after the negotiation deadline. The strike has drawn attention as UAW President Shawn Fain, who had demanded up to a 40% wage increase and vowed to strike if necessary, took action.

Sean Payne, former president of the United Auto Workers (UAW)
[Photo by Reuters]

CNN recently described Fain as "a figure who was almost unknown just a year ago but has now emerged as one of the most important figures in the U.S. economy," adding, "This strike could influence the 2024 presidential election through its impact on the U.S. economy beyond Detroit." It is projected that if the UAW strike, involving 150,000 union members, continues for ten days at the three automakers, the costs to manufacturers, suppliers, and workers could exceed $5 billion (approximately 6.6 trillion KRW), and supply chain disruptions may occur.

Negotiations between the three Detroit automakers and the UAW took place for the first time in four years since 2019. The deadline for this round of talks, which began in July, was the 14th. The union presented demands centered on a wage increase of up to 40% for union members, citing the big three companies’ substantial profits over the past four years and the massive compensation received by their CEOs. Other demands included the introduction of a 32-hour workweek, increased retirement pensions, improved welfare benefits, and a revised wage structure for new hires.

Fain, who took office in March, has shown a tough stance throughout the negotiations with the three companies, mentioning the possibility of a strike just four months into his term. In a video distributed to union members ahead of the negotiation deadline, he said, "We are all fed up with corporate greed. To change that, we will fight together as if we are in hell." He described the company’s proposals as "trash" and "insulting," even showing himself throwing them into a trash bin.

Industry insiders have assessed that Fain’s strong offensive stance is inevitable given the difficulty he faced in ascending to the presidency.

According to reports, at the end of last year, Fain faced off against then-incumbent president Ray Curry. Although Fain had worked at the UAW since 2012, he was a newcomer challenging the sitting president at that time. In the first round of voting, Fain secured 38% of the vote, placing second, and in the runoff election held due to no majority winner, he narrowly defeated Curry by fewer than 500 votes.

A notable point is that this election followed changes in the voting system due to previous union presidents’ embezzlement scandals, which expanded direct voting participation by rank-and-file union members. Ultimately, the support of ordinary union members was considered the decisive factor in Fain’s victory. His slogan at the time, "No concessions, no corruption, no hierarchy," reportedly secured strong backing from lower-level workers who received the least benefits among the rank-and-file.

Patrick Anderson, CEO of the Anderson Economic Group, said, "It is significant that Shawn Fain is the first union president elected by popular vote," adding, "He campaigned for his own job and won by a narrow margin. He likely believes he must continue as he has been." The hardline approach to fight entrenched interests and implement policies for rank-and-file members was a key factor in gaining union support, and the strike is interpreted as an effort to achieve tangible results.

Fain, who hails from Kokomo, Indiana, comes from a family where three of his four grandparents worked in automobile factories. He first joined the UAW in 1994 as an electrical technician at Chrysler and served as a UAW negotiator during Chrysler’s bankruptcies in 2009 and 2011. Since 2012, he has worked as a UAW staff member participating in various negotiations.

Meanwhile, the strike began at three locations: Ford’s Wayne Assembly Plant in Michigan, Stellantis’s Jeep assembly plant in Toledo, Ohio, and GM’s Wentzville Assembly Plant in Missouri. A total of 12,700 workers participated in the strike. As a result, production of some popular models, including the Ford Bronco SUV, Stellantis Jeep Wrangler, and GM Chevrolet Colorado midsize pickup, has been halted.

Fain has indicated that, for now, a full-scale strike causing greater damage is on hold, but warned that any option remains possible if a new agreement is not reached. He stated, "For the first time in our history, we will strike all three of the big three automakers simultaneously."

This content was produced with the assistance of AI translation services.