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Factbox-From UPS to Detroit Three automakers, US labor unions flex muscle

Published 10/02/2023, 09:53 AM
Updated 10/02/2023, 09:57 AM
© Reuters. FILE PHOTO: Teamster member Sergio Martinez yells out during a rally outside a UPS facility in downtown in Los Angeles, California, U.S. July 19, 2023. REUTERS/Mike Blake

By Mrinalika Roy

(Reuters) - A tight U.S. labor market, the expiry of union contracts and high living costs have led to tough negotiations for pay hikes and benefits from workers and triggered strikes and protests across industries.

Nearly 309,700 workers have been involved in work stoppages and strikes through August this year, according to preliminary data from the U.S. Bureau of Labor Statistics, putting 2023 on track to becoming the busiest year for strikes since 2019.

Here are some sectors and companies that faced tough negotiations in 2023:

MEDIA

The Hollywood's writers' union struck a tentative deal with the Alliance of Motion Picture and Television Producers last week after five months of failed negotiations. Film and television writers had walked off the job in May over compensation, staffing and residual payments, among other issues.

The striking writers were later joined by the SAG-AFTRA actors union, which remains on strike. Hollywood studios and negotiators for the striking actors will hold talks on Oct. 2.

AUTOMOTIVE

The United Auto Workers (UAW) union has expanded its ongoing strike against the Detroit Three automakers - General Motors (NYSE:GM), Ford Motor (NYSE:F) and Chrysler parent Stellantis (NYSE:STLA). The coordinated strike, which began after the earlier contracts expired on Sept. 15, initially targeted three assembly plants in Michigan, Ohio and Missouri. It has now expanded to 38 locations across 20 states.

About 4,000 workers represented by UAW reached an agreement with Volvo (OTC:VLVLY) Group-owned Mack Trucks late on Sunday to avoid a strike. About 98% of the truck company's workers had authorized a strike last month.

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PARCEL DELIVERY

Teamsters union workers at United Parcel Service (NYSE:UPS)

ratified a new five-year contract in August, a deal that raises pay, eliminates a two-tier wage system for drivers, provides another paid holiday and ends forced overtime.

FedEx (NYSE:FDX) pilots have been involved in a standoff with the parcel delivery firm over wages and legacy pensions. Pilots rejected a tentative deal in July and negotiations are expected to restart.

AIRLINES & AEROSPACE FIRMS

Pilots at several airlines including American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL), United Airlines Holdings (NASDAQ:UAL), Spirit Airlines (NYSE:SAVE) and Jetblue Airways negotiated new job contracts this year.

Members of some unions like the Southwest Airlines (NYSE:LUV) Pilots Association have voted to authorize a strike if a new contract is not reached.

Spirit AeroSystems (NYSE:SPR) negotiated a new contract to end a strike that led to a week-long work stoppage at its plant in Wichita, Kansas.

MANUFACTURING

U.S. steel producer Cleveland-Cliffs (NYSE:CLF) has reached a tentative agreement with the United Steelworkers union on a new three-year labor agreement for its Northshore mining operations.

U.S. Steel, which is reviewing multiple proposals ranging from partial acquisition to an entire buyout, is embroiled in a tussle with the United Steelworkers union. The company's unionized workers say they essentially have the power to veto any transaction they do not approve of.

CONSUMER & RETAIL

Last week, workers at three Detroit casinos - MGM Grand Detroit, Hollywood at Greektown and MotorCity - voted in favor of authorizing a strike at all three locations if a new contract agreement isn't reached.

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The Detroit Casino Council (DCC), which represents the workers, could call for strikes as soon as mid-October, when contracts expire.

More than 3,000 workers at more than 150 Starbucks (NASDAQ:SBUX) stores in the U.S. held strikes in June, following claims the company had banned Pride Month decorations at some of its cafes.

Thousands of Los Angeles-area hotel staffers went on a three-day strike in July over improved wages, benefits and working conditions. Union leaders representing the workers have threatened further walkouts.

HEALTHCARE

More than 7,000 nurses went on a three-day strike in New York City over staffing levels and pay hikes in January.

CANNABIS

Unions representing cannabis workers have also increased pressure on companies in the sector this year.

Workers at Green Thumb Industries (OTC:GTBIF)' Chicago-area RISE dispensaries went on a 13-day unfair labor practices (ULP) strike in April, which was the longest ULP strike at a cannabis retailer in U.S. history.

Labor unions secured new contract agreements at multistate operator-owned cannabis dispensaries in Illinois and in New Jersey in July.

ENERGY

Unionized workers at Phillips 66 (NYSE:PSX)'s refinery in Roxana, Illinois, ratified a contract with the refiner in late-stage negotiations, averting a potential strike.

The union had been in talks with the refiner since summer, when it rejected a company proposal and sought additional benefits for holiday and vacation hours and pay, among other improvements.

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