By Nelson Lichtenstein - Jacobin, November 1, 2023
The UAW’s victory in its forty-five-day strike against the Big Three Detroit automakers is historic and transformative, ending a forty-three-year era of concession bargaining and labor movement defeat that began with Chrysler’s near bankruptcy in 1979 and Ronald Reagan’s destruction of the Professional Air Traffic Controllers Organization two years later.
Not only did the union win substantial wage increases for all members in its tentative agreements (TAs) — at least 25 percent over the four-and-a-half-year contract — but the wage structure is radically progressive, eliminating the second- and third-class status endured by thousands of temps and second-tier workers. With the regularization of their employment status, these workers will enjoy extraordinary pay increases, in some cases upward of 150 percent.
And the union clawed back the annual cost-of-living adjustment (COLA) that had been eliminated during the 2008 financial crisis. COLA had been a standard feature of UAW contracts since 1948, when General Motors first proposed it to the union to blunt the effort, forcefully pushed by then UAW president Walter Reuther, to limit auto and steel industry price hikes either through collective bargaining or government regulation. The labor movement at the time was fighting to limit inflation but secure a healthy wage increase — benefitting working class and middle class alike, union and nonunion, by advancing a program that shifted income and wealth from capital to labor.
That ambition failed during the increasingly conservative postwar years, making COLA increasingly coveted, and not just among industrial workers. During the major 2022 strike of graduate students and other academic workers at the University of California, winning COLA became the key demand of the most radical and activist segment of the student workers. Among the unionized workers of the Big Three, the restoration of COLA will probably add a 7 or 8 percent wage boost to the nominal wages workers earn over the life of the contract. (UAW members still need to ratify the tentative agreements, which they’re expected to do so in the coming weeks given the strength of the deals.)
UAW president Shawn Fain and other progressives, in the unions and out, have correctly denounced the vast pay inequalities that have given corporate CEOs three or four hundred times more income than the bulk of those employed in the same firms. But that income gap has always had an abstract quality. Few workers ever meet a top executive. Far more important, and divisive, have been the petty inequalities within the working class itself. When the person doing the same work on the line or behind the counter is making two dollars more an hour, solidarity decays and resentment festers. That is why Shawn Fain’s campaign for the UAW presidency last year declared, “No corruption, no concessions, no tiers.”
Indeed, this strike victory, spearheaded by Fain and a new slate of union leaders, resembles the dynamic that launched onto the national stage other tribunes of the US working class, from Eugene V. Debs in 1894 and William Z. Foster in 1919 to Walter Reuther in 1946 and Cesar Chavez in the late 1960s, armed with a progressive message and a mobilized membership backing that up. The UAW strike flowed organically from the movement to democratize the union, a multigenerational effort that culminated in the successful push, led by an opposition caucus, United All Workers for Democracy (UAWD), to elect top union leaders by a referendum vote of the entire membership. This would curb the insularity, corruption, and self-perpetuating leadership of a UAW executive board long dominated by a machine known as the Administration Caucus.