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Looming UAW Strike Could Cost Billions, Further Fuel Inflation and Impact 2024 Election

  • A UAW strike could start this Friday when contracts expire, costing the economy billions. A 10-day strike could reduce GDP by $5.6 billion.

  • Nearly $1 billion would come from company losses. $859 million lost from worker pay. The auto industry could lose over $3.5 billion.

  • A strike could drive up inflation further, hindering the Fed's progress. New vehicle prices may increase nearly 2% with a 2-week strike.

  • The strike could hurt Biden's reelection chances in 2024. Key swing states like Michigan and Wisconsin would take economic hits.

  • UAW has rejected offers from automakers so far. Biden anticipates a deal but can't force the sides to keep working.

businessinsider.com
Relevant topic timeline:
Members of the United Auto Workers have voted overwhelmingly to authorize a strike against Ford, General Motors, and Stellantis if a competitive contract is not offered by September 14, with key demands including wage increases, improved benefits, and the elimination of the two-tiered employment system.
The United Auto Workers union and three Detroit automakers are facing a looming strike as contract negotiations stall, potentially impacting the U.S. economy and the companies' profits amid the shift to electric vehicles and demands for improved wages and benefits.
The demands of the United Auto Workers (UAW) union, including higher pay, shorter work hours, and the restoration of pensions, could lead to a strike against General Motors, Stellantis, and Ford as the automakers refuse to meet these demands, potentially raising already-inflated vehicle prices.
The Biden administration faces pressure to deliver on its promise of better wages and benefits for workers at electric vehicle facilities as negotiations between the United Auto Workers union and major US automakers continue, with the announcement of up to $12 billion in loans from the Department of Energy to retrofit existing manufacturing facilities for EV production and create high-paying union jobs.
GM, Ford, and Tesla are expected to face rising labor costs, whether or not a strike occurs as the United Auto Workers' labor deal with the Detroit-Three automakers nears its expiration.
United Auto Workers President Shawn Fain stated that the Detroit Three automakers, including Stellantis, Ford, and General Motors, are making progress towards meeting the union's demands as the deadline for current contracts approaches. Stellantis offered a 14.5% wage increase, Ford proposed a cost-of-living wage adjustment, and GM suggested a 10% boost, but the offers still fall short of the UAW's requested 46% increase.
The United Auto Workers' potential strike could cost the U.S. economy $5 billion and disrupt production at certain UAW factories, particularly targeting Ford's popular F-150 pickup truck, potentially leading to higher prices and affecting the broader auto industry.
Approximately 146,000 U.S. auto workers are poised to go on strike if General Motors, Ford, and Stellantis fail to meet their demands for substantial pay raises and restored benefits, potentially causing significant disruptions in auto production and impacting the U.S. economy.
The United Auto Workers and the "Big Three" U.S. automakers are negotiating a new labor contract, with the possibility of a strike looming and workers demanding a 20% raise and other benefits, which could potentially impact the Michigan economy and lead to costlier electric vehicles.
Car dealerships are preparing for potential strikes by the United Auto Workers against Ford, General Motors, and Stellantis, which could lead to inventory shortages and higher prices for both new and used cars.
Many on Wall Street believe that potential strikes by United Auto Workers against Detroit automakers are manageable and may even present investment opportunities, with some estimating that the companies can handle work stoppages and expected labor cost increases.
The United Auto Workers union could potentially strike at Detroit's Big Three automakers if a deal isn't reached by the contract deadline, although progress is being made in the talks regarding wages.
The United Auto Workers' threat to strike against major automakers could test Joe Biden's claim of being the most pro-union president in US history and have significant economic and political implications, potentially causing car shortages and layoffs in auto-supply industries and other sectors.
The duration and economic impact of a potential UAW strike against the Detroit automakers is uncertain, with the UAW's strategic walkouts making it difficult to predict the length of the strike and losses in the economy. While a short strike may not fundamentally change Michigan's economic trajectory, a longer strike or one targeting all three automakers could have a longer-lasting effect on the state's economy. However, a strike-induced recession for the US economy seems unlikely, and Michigan could rebound with wage gains if the strike is relatively short.
A potential strike by the United Auto Workers could have wide-ranging economic impacts, including higher car prices and job losses at suppliers, with a prolonged strike even potentially pushing the economy toward a recession.
The United Auto Workers' strike against car companies in Michigan is seen as a real-time test of President Biden's economic agenda and policy positions, including higher wages for the middle class, support for unions, and the push for an electric vehicle future.
Investors shouldn't be worried about the impact of the strikes by United Auto Workers on Ford, GM, and Stellantis, as the lack of a significant reaction in stock prices suggests that the strikes have not been priced in and the market doesn't expect them to have a lasting impact on the economy.
A strike from the UAW against GM, Ford, and Stellantis may lead to higher car prices and limited availability for certain models, impacting consumers and dealerships.
The United Auto Workers strike presents a risk to the U.S. economy, but it also demonstrates that workers are advocating for their fair share in a strong macroeconomy, according to Council of Economic Advisers Chair Jared Bernstein.
The United Auto Workers' targeted strikes have a limited current impact on the U.S. economy, but the possibility of a full walkout could have significant economic costs for auto giants Ford, General Motors, and Stellantis.
A prolonged UAW strike against the Big Three auto companies in Michigan could result in the loss of more than 150,000 jobs and over a billion dollars in personal income, as well as potentially bankrupting the automakers if the union's demands are met, according to experts.
The ongoing United Auto Workers strike against the Big Three automakers could result in gains for Tesla and foreign automakers as Ford, GM, and Stellantis face challenges in transitioning to electric vehicles and potentially raising prices, according to Wedbush analysts.
US autoworkers are striking against General Motors, Ford, and Stellantis (formerly Chrysler) to fight for fair wages and benefits, as well as taking on the power of the billionaire class represented by Stellantis chairman John Elkann and his wealthy family dynasty.
The United Auto Workers (UAW) expanded their strike to include additional GM and Stellantis parts distribution centers, adding 5,600 workers and demanding wage increases and an end to tiered-wage scales, while Ford was spared due to progress in talks with the automaker.
Summary: The United Auto Workers' strike against the Big Three automakers continues, with Ford reaching a deal with Canadian auto workers but no breakthroughs in negotiations with the UAW, as President Joe Biden prepares to visit the picket lines amid concerns over parts and supply shortages.
Joe Biden and Donald Trump will address striking auto workers in Michigan, highlighting the importance of unions in the 2024 presidential election, despite their representation of a small fraction of U.S. workers.
The United Auto Workers union will expand strikes at General Motors, Ford Motor, and Stellantis plants if significant progress is not made in negotiations by Friday, potentially affecting thousands of workers.
The United Auto Workers' decision to strike midsize SUV plants at General Motors and Ford instead of targeting the plants that produce highly profitable pickups and large SUVs helped contain the damage to the auto parts suppliers, with Stellantis' last-minute intervention likely saving thousands of jobs in Michigan.
Biden's proposal to increase fuel economy standards could cost General Motors $6.5 billion in fines and Stellantis $3 billion, according to an industry group representing major automakers.
General Motors estimates that the United Auto Workers strike will cost around $200 million during the third quarter and has filed for additional credit of up to $6 billion in case of ongoing labor troubles.
The ongoing strikes in the U.S., including those in the entertainment industry and by the United Auto Workers, are causing significant economic losses and have raised concerns about a potential recession, with estimates suggesting damages of up to $10 billion and fears of reduced productivity, spending, and hiring.
The United Auto Workers union has announced that Ford, General Motors, and Stellantis are likely to avoid an expansion of the ongoing strikes, as significant progress has been made in negotiations with GM regarding the future of auto jobs and the transition to electric vehicles.
The United Auto Workers' strike against Detroit's Big Three automakers has cost the U.S. economy $5.5 billion, making it the most expensive auto industry strike of the century.