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Ford Authority

First Week Of UAW Strike Inflicted Over $1 Billion In Damage

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.

United Auto Workers UAW Strike Ford Michigan Assembly Plant

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.”

United Auto Workers UAW Strike Ford Michigan Assembly Plant

“For those Tier 1 and Tier 2 suppliers with business with GM and Stellantis, it just became almost impossible to plan for production in the coming weeks,” Anderson added. “Some of these suppliers, which often have small-margin contracts with just a handful of plants, are at risk of closing down. There is no $825 million strike fund to hold suppliers, and they don’t have a vote in this strike. The most serious damage is occurring to the workers and owners of these firms. We estimated the first-week cost of the UAW’s ‘stand up’ strike was at least $1.6 billion. The lost wages in the next week will be substantially more.”

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.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Bill

    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.

    Reply
    1. masb1955

      Don’t you mean the Biden Crime Family?

      Reply
  2. Bob

    The uaw cares only about it’s members aka sheeple.
    They create hardships for innocent people & business’s.
    Break the union & hire people that want to work.

    Reply
    1. Proud2BUnion

      You don’t think the Unionized employees want to work?
      I think they do, just not for less that McDonalds starting wages.

      Reply
      1. UnionBuster

        Tell your Union that… otherwise the Union should cover the billion dollar loss and in wages.

        Reply
        1. richard emil dipaola

          its called a strike fund btw have you ever walked the line or a work slowed down to get back benny you gave up to keep so ther would not be layoffs i do not think so

          Reply
      2. Musi

        You think you are a master race don’t you? Like hypocrites you love to buy cheap stuff made by cheap labor in Mexico or China. While our neighbors in Mexico get paid far less and they live of those modest means to produce exactly the same amount of work as you do – you want more?

        Reply
        1. UnionBuster

          To add to this, many Fords are already assembled in Mexico. I support made in America all the way, but not when someone without a college degree is getting paid as much as the engineers who design the cars., to only be working 4 days per week. They already have good benefits, and very fair pay for the work they do. And we appreciate their work…when they’re working. This BS just harms everyone involved.

          Reply
          1. John

            Unions = unskilled, lazy, entitled, don’t take pride in their work crybabies. Get rid of all the union workers and hire people that aren’t entitled and want to work. Typical Democrats, want everything for free, but don’t want to work for it.

            Reply
          2. SolidarityForever

            Why does it matter to you?

            Reply
          3. richard emil dipaola

            you be are nut you done get skilled works get reel pay you red people are confused about what the republic party stand for today

            Reply
        2. SolidarityForever

          Yes, we do. We are Americans and we care about America. I hope Mexico is able to unionize for comparable wages.

          Reply
          1. Alfred

            If Mexico does that, there would be no point in having them build for us.

            Reply
          2. masb1955

            Them’s fighting’ words.

            Reply
      3. steve

        your full of it . everyone agrees that with benefits uaw averages 65.00 an hour, not mcdonalds pay. you all are asking for 40% raises, yet your loosing your mids over 6% inflation. the uaw will win, but when Ford , GM builds a new factory in will go to mexico

        Reply
        1. SolidarityForever

          No, not everyone agrees with that. That’s top pay legacy employee pay. That is not equivalent to the $17 an hour temp jobs with barely any benefits.

          Reply
          1. masb1955

            That’s why it’s called a “temp job

            Reply
      4. UnionsAreNowUseless

        “Want to work”?
        By reducing their workload to 32 hrs a week and around a 40% raise over 3 years?

        Reply
    2. Greg H

      Hey dumb ass you don’t have a clue of what’s going on. The UAW gave back all their benefits back in 2008 recession with the promise of getting them back when the company started making profits again but they chose not to they gave back all salaries benefits don’t thank that’s fair and I would love to see some of you big mouths come in and try to do some of the jobs you would quit in the first day and run home crying. Y do you think all these people are coming to the USA and leaving Mexico for good paying jobs morons you probably support the cartels and the drug dealers I don’t hear you crying about that but let a working man who keeps this country going try to make a descant living I don’t think the drug dealers are

      Reply
      1. masb1955

        Try to do some of the jobs? I’ll clean toilets for $65. / hr. And b.t.w: it’s Sunday, easy with the language. I’ll say a prayer for you. Have a blessed day.

        Reply
    3. masb1955

      Not true. The UAW doesn’t give a rat’s ass about it’s members. Only the top officials with coffee cans buried in their back yards and envelopes with cash stuffed in their pockets care about themselves. OH WAIT, Isn’t that Bob Menendez ?!?

      Reply
  3. Bill Howland

    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.

    Reply
  4. Bill Howland

    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.

    Reply
    1. Mike

      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!

      Reply
      1. Bill Howland

        Stay tuned. I’m sure u will be the first to complain about future realities.

        Reply
      2. Cordo

        Mike- Stop using apostrophes until you learn how to use them…

        Reply
        1. masb1955

          Pretty funny.

          Reply
    2. masb1955

      Walmart: Today, about $165. per share. Purchased mine in 2010 $35. per. “Anything imported?”, I thought EVERYTHING was imported.

      Reply
  5. Ken

    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

    Reply
    1. masb1955

      What he said.

      Reply
  6. William J. Offutt Jr.

    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 !

    Reply
    1. SolidarityForever

      Cool, sounds good. When will they be here to do that?

      Reply
      1. masb1955

        There on their way now. Two bus loads just passed me and they sure were in a hurry

        Reply
    2. masb1955

      I like mine spicy.

      Reply
  7. Greedy Unions

    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!!

    Reply
    1. SolidarityForever

      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?

      Reply
      1. UnionsAreNowUseless

        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.

        Reply
        1. G O PEE

          Work 70 hours a week to pay off that student lone for the rest of your life

          Reply

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