Workers across industries are taking a hard stance against companies for better pay and working conditions, leading to a surge in strikes and support for organized labor, with more than 320,000 workers participating in at least 230 strikes so far in 2023, according to data from Cornell University School of Industrial and Labor Relations.
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 United Auto Workers union representing workers at the Big 3 U.S. automakers is demanding a four-day workweek at full-time pay, a 46% wage increase, and a share of company profits, threatening to strike if an agreement is not reached by September 14.
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.
A prolonged strike by the United Auto Workers, along with other factors such as higher oil prices and rebounding medical costs, could lead to an unexpected inflation surprise in the fourth quarter and potentially keep the Fed from making interest-rate cuts, according to analysts.
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.
A potential United Auto Workers strike could have negative effects on car shoppers, particularly for certain models of cars, trucks, or SUVs, depending on the automaker and the specific vehicle desired.
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.
A potential strike by the United Auto Workers union against Ford, GM, and Stellantis could cost the economy $5.6 billion and impact Biden's chances in the election, as it may drive up inflation and push Michigan into a recession.
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 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.
Negotiations between the United Auto Workers and automakers are nearing a critical point, but even if there is a strike, it is unlikely to cause a recession in the U.S. economy.
A potential strike at major US automakers could have far-reaching economic consequences, including the threat of job losses, reduced spending, disruptions to car component suppliers, and higher prices for consumers, potentially impacting the US economy as it faces other challenges such as high oil prices and a federal government shutdown.
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.
Summary: Union workers at America's Big Three automakers—GM, Ford, and Stellantis—have initiated a historic triple strike over contract disputes, marking the first-ever simultaneous strike against the automakers and potentially costing over $5 billion if it lasts ten days, according to projections by the Anderson Economic Group.
More than 12,000 workers at the Big Three automakers are on strike in Michigan, Ohio, and Missouri due to inadequate wages and benefits, demanding higher pay and an end to the tiered employment system.
The United Auto Workers' strike has led to temporary layoffs for 600 workers at Ford's Michigan plant and is expected to affect 2,000 workers at General Motors' Kansas plant, with no compensation provided by the companies.
The auto workers' strike, although currently limited in its impact, could have significant growth implications if it expands and persists, potentially causing a 1.7 percentage point quarterly hit to GDP and complicating policymaking for the Federal Reserve.
Treasury Secretary Janet Yellen says it's too early to determine the impact of the ongoing autoworkers strike on the US economy, highlighting the need to assess the duration and scope of the strike, as negotiations continue between the United Auto Workers and the Big Three automakers.
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.
The United Auto Workers strike is exacerbating supply chain issues and causing delays in car repairs due to a strained car parts market.
The ongoing strike by the United Auto Workers against Ford, General Motors, and Stellantis has cost the U.S. economy nearly $4 billion in total losses, with workers, automakers, dealers, customers, and suppliers experiencing significant financial impacts.
The United Auto Workers' phased strike strategy against the Detroit Three automakers is causing job losses and economic risks that will continue to escalate if more factories and facilities join the strike, potentially leading to a negative fourth quarter for the US economy.
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.
Approximately 400 Ford employees are being temporarily laid off due to the United Auto Workers' strike, bringing Ford's total layoffs to around 1,330, while General Motors estimates that the strike has cost them $200 million.
The United Auto Workers strike has negatively impacted GM and Ford stocks, while Tesla has not been affected.
The U.S. steel industry is being negatively impacted by the United Auto Workers' strike against Detroit's automakers, causing a decline in steel demand and a significant drop in prices.
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.
The United Auto Workers strike continues into its fourth week, leading to layoffs of hundreds of factory workers at General Motors, Ford, and Stellantis plants, with a combined total of around 4,835 strike-related layoffs by the Big Three automakers.
The United Auto Workers union expanded its strike to Ford's largest truck and SUV factory in Louisville, affecting 8,700 workers and disrupting the company's global sales, after Ford failed to make progress in contract negotiations, bringing the total number of striking UAW workers at major automakers to roughly 22 percent of the union's workers, leading to severe disruptions in the industry and ripple effects on suppliers and non-striking UAW members.
The United Auto Workers' strike at Ford's Kentucky truck plant raises concerns about the spread of the economic effects of the work stoppage and the potential for more aggressive strikes against other automakers such as GM and Stellantis.
Thousands of United Auto Workers Union members are in their fifth week of striking against the Detroit Three automakers, with 8,700 workers at Ford's largest plant walking off the job and risking the company losing approximately $30 million per day in profit.
