The United Auto Workers union’s strike against Detroit’s Big Three automakers is now in its fourth day and could cost the U.S. economy as much as $500 million by the end of the week.
General Motors, Ford and Stellantis are bracing for economic impact after refusing to meet union contract demands during weekend crisis talks.
Former Chrysler CEO and Chairman Bob Nardelli said on Fox Business Mornings with Maria that economic impact reports woefully underestimate the real effect the strike will have on the economy.
“That’s much more than three factories on strike. Every city, every state has dealers that will be affected by this,” he said. “This thing has wide and deep tentacles that will affect our economy.”
Deutsche Bank estimates that an all-out strike could cost each affected automaker $400 million to $500 million per week if all production is lost. Anderson Economic Group predicts that a full 10-day strike could result in a total economic loss of more than $5 billion.
UAW protesters entered their fourth day of strike after manufacturers failed to reach an agreement. The union is demanding wage increases, better benefits and an end to multi-level work.
General Motors, Ford and Stellantis have all seen their stock prices fall and plan to resort to cost-cutting measures as the historic strike continues.
Picketers hold signs as a truck carrying Jeep Wranglers drives past the Toledo, Ohio, factory on Sunday.
Manufacturers saw stock prices fall as markets opened Monday, after nearly 13,000 workers walked out at once on Friday – the first time all three have gone on strike simultaneously.
Ford opened at $12.52, down 0.75 percent, Stellantis opened at $18.94, down 1.61 percent and General Motors opened at $33.77, down 0 ,50 percent.
Analysts expect factories that make more profitable pickup trucks, such as Ford’s F-150, GM’s Chevrolet Silverado and Stellantis’ Ram, to be the next strike targets if the walkout continues.
The union wants big wage increases, better retirement benefits and an end to tiered employment – demands that manufacturers can afford to meet, they say.
UAW President Shawn Fain (photo) said he would do everything in his power to ensure the union’s demands were met.
Stellantis presented a counter-offer with a 21% salary increase which was rejected.
GM warned Monday that more than 2,000 workers at its Fairfax, Kansas, assembly plant could be out of work this week due to material shortages, just days after Ford laid off more than 600 workers.
UAW President Shawn Fain said there had been “little conversation over the weekend, so the ball is in their court.”
“Over the last decade, they made a profit of $250 trillion. The CEOs gave themselves a 40 percent salary increase over four years,” he added. MSNBC Morning Joe.
“They could double our salaries; do not increase the price of vehicles and they would still make billions in profits. It’s a business choice. It’s nothing less than two words: corporate greed.
The UAW is demanding pay increases of up to 40 percent to match those of CEOs and wants to restore cost-of-living adjustments. They call for a defined benefit pension for all workers and restore retirees’ medical benefits while increasing their pay.
The union proposed more paid leave to spend time with families, suggesting a four-day work week with no pay cut. They are also demanding the right to strike against factory closures as manufacturers close their factories to convert them to electric vehicle production.
Manufacturers say they presented fair counteroffers and that no one wins in a strike. The negative effects are already being felt.
“It is unfortunate that the UAW leadership’s decision to strike at the Wentzville Assembly has already had a negative ripple effect, GM’s Fairfax Assembly Plant in Kansas and its 2,000 team members expected to be inactive beginning this week,” General Motors said. said in a statement.
“This is due to a shortage of critical stamps supplied by the Wentzville stamp operations in Fairfax. We are working under an expired agreement at Fairfax. Unfortunately, there is no provision authorizing the payment of a top-up bonus provided by the company in these circumstances.
The picketers chant “No contract, no peace!” » in Wentzville, Missouri, during the fourth day of the UAW strike
Deutsche Bank estimates that an all-out strike could cost each affected automaker between $400 million and $500 million per week.
Striking auto workers demonstrate outside the Ford plant in Wayne, Michigan, as 600 employees were laid off after the first day of the strike.
Ford is also preparing for an auto worker strike in Canada as contract negotiations between Unifor, the union that represents auto workers in Canada, and manufacturers near their deadline.
Unifor President Lana Payne said CNN, ‘We’re not close at all. There is a lot of work to be done to reach an agreement by midnight Monday.
As strikes continue at Detroit’s Big Three, Tesla shares are rising, providing an advantage to other non-union auto and electric vehicle makers.
President Biden has said he will provide liaisons to help with contract negotiations, but Fain says the administration has no role to play.
The coordinated strike comes at a time when Americans’ approval of unions is at its highest level in decades, even as union membership remains largely unchanged.
