As Ford Authority reported last week, the United Auto Workers (UAW) union ultimately decided not to take action at additional Ford-owned facilities after the two sides made recently “real progress” in talks regarding a new four-year contract – though that isn’t the case with General Motors and Stellantis. The UAW then released a detailed list of what each of the Detroit Big Three automakers was offering as opposed to what it’s asking for, revealing that the union and The Blue Oval are far closer to finding common ground than GM and Stellantis. As it turns out, at least part of this movement could be attributed to a rather massive financial loss incurred by these automakers, according to Automotive News.
Recent estimates released by the Anderson Economic Group (AEG) out of East Lansing, Michigan indicated that in the first week of the UAW strike alone, automakers suffered from a collective $1.6 billion in economic losses – a staggering sum, indeed. With the UAW now walking out of an additional 38 GM and Stellantis parts and distribution centers as well, it also figures to grow substantially in the coming week, too.
“Because the auto industry is highly integrated across suppliers and assembly plants, shutting down one plant will cause layoffs and shutdowns at other plants,” said Patrick Anderson, principal and CEO of AEG. “That includes supplier businesses, especially those that are dependent on a handful of contracts with the OEMs.”
We’ll have more on the UAW strike soon, so be sure and subscribe to Ford Authority for more 2023 Ford-UAW news, UAW news, and continuous Ford news coverage.
Comments
Does the UAW have a sweetheart and secret deal with the Biden administration to “restock” their strike fund account after a deal is reached? Not positive such large pay raises is going to enable these auto companies to remain competitive in the future EV market that the Feds are pushing onto all. The cost disadvantage of these companies compared to say tesla is going to be staggering and could lead to consumers saying no to purchasing higher priced UAW produced EVs.
Inflation is going to be so bàd that union is insisting on COLA – cost of living adjustments, and higher pay raises just to stay at an even keel.
At best, they will likely lose ground anyway. I think that the 32 hour proposal of the union is just a bargaining chip and that any agreement will mandate a 40 hour work week and reduced 2-tier nonsense. I don’t believe the union wants to give up the work.
Americans in general will get a rude awakening when they no longer can afford Anything Imported.
I would not have stock in Walmart or Target long-term..
Deficits don’t matter of course, until they DO.
What are you saying? Already many American’s cannot afford American made auto’s! And when you add on the extra costs to vehicles to pay these overpaid employees want’s, they for SURE will not afford American vehicles and will continue to support the erosion of American product’s by purchasing imported vehicles. Which many say have far higher quality!
Stay tuned. I’m sure u will be the first to complain about future realities.
Mike- Stop using apostrophes until you learn how to use them…
More spoiled Americans. They should get a raise but they are looking for to much. I think they should fire them if they don’t want to go to work after a fair deal. You should move your factories and maybe hire some migrants they would love a good job. Don’t give in to the rhetoric. You are the company if they don’t want to work there let them quit. Spoiled
If they can build Goodyear Assurance tires in Chile, then Millions of migrants can replace American workers ! They can also build cars in Chile, as well !
Cool, sounds good. When will they be here to do that?
UAW workers who are choosing to strike, which is their right as a union, are now threatening to sue states over unemployment benefits if they are deem ineligible!! Sorry folks, but that is taking it too far! You don’t get tax payer benefits from tax payers (many of whom make less than you) for a choice you are making. That’s right up there with snot nosed college grads thinking Joe the plumber should pay for their schooling so they can make 3 times as much as him. You guys are out of control and it’s why everything cost more and America is going down the crapper. WAKE UP!!
It isn’t fair to call us greedy when the CEO makes our yearly salary in a day due to “performance bonuses”. We are absolutely NOT the reason why everything costs more. We are striking because companies keep raising the prices of everything. I’m very much awake to this situation. Are you?
One guy or woman.
Should a semi-pro OL make what Mahomes does?
Apples and Oranges
Here’s an idea. Start your own automotive manufacturing company.
OR…
Educate yourself with a 4 year college degree, obtain a masters and start in the C-Suite at the bottom. Move from town to town. Work really hard with 70 hr weeks behind a desk or in the air and no time for much else. Then maybe the BOD will consider you.