As midnight hit, the United Auto Workers went on strike against the big three automakers. Thirteen thousand auto workers walked off the job due to failed contract negotiations that would guarantee higher wages, benefits, and job protection for employees whom the big three companies employ. The strikes could slow economic growth in the nation and result in job losses for auto workers. The strikes are taking place in Detroit, Michigan, Toledo, Ohio, and Wentzville, Missouri.
The U.A.W. workers are demanding higher wages, an increased cost of living wage, the end to wage tiers, and better benefits overall. The workers also want to get concessions lost due to the auto companies’ financial hardships in 2007.
The U.A.W. uses surgical strikes to leverage the union in negotiations, and the union wants to keep the auto companies “guessing.” The companies have been making billions of dollars yearly, and the union argued that they can pay its employees a liveable wage with large profits.
General Motors (G.M.) offered its employees a 20% wage increase in its last-minute efforts to strike a deal before the deadline. The other companies, like Ford and Stellaris, offered their employees 20% and 17.5%. The union and Big Three companies are still far from an offer because the union is asking for a 36% increase. However, the companies think that the demands from the union are too expensive. President Biden has sent two aides to help get the two parties to the negotiating table.
Currently, there are a few things at stake economically. The strikes may have several implications for the US as they go on. The price of cars would rise because there would only be a limited amount of vehicles being produced. With plants threatening to shut down, it could also add to a rise in car prices.
If the strike turns out to be longer than ten days, over 1 billion dollars will be at a loss. The Midwest will take the brunt of these strikes due to the American auto industry being concentrated in the region. The auto industry also accounts for about 3% of the US GDP, therefore affecting the US economy.
