Auto workers hit the picket line On September 15th in a strategic strike plan that pulled thousands of workers from plants operated by the Big Three auto companies: Ford, GM, and Stellantis.
Standing in solidarity with union members, Senator Bernie Sanders also took to the picket line to hold auto companies responsible for their unfair profit-sharing practices with workers despite record-breaking profit years.
In another historic show of solidarity, President Biden joined the picket line on September 26th to offer his support for higher wages and better work conditions.
Where Do Negotiations Stand?
After over a month of picketing, negotiations are still back and forth with the UAW and the CEO’s of the Big Three. Among the demands made by the auto workers’ union are wage increases of up to 40%, better retirement benefits including healthcare and pension plans, and overall better working conditions.
On October 9th, the automakers inched closer to UAW demands, but UAW president Shawn Fain says there is still work to be done before new contract agreements can be settled. As of now, Ford has agreed to a 23% pay raise, from their initial 9% percent. General Motors has also agreed to a 20% raise, which is double their previous 10%. Meanwhile, Stellantis says it can offer 21.4 percent raises, up from 14.5 percent.
GM has also shared that it would allow the workforce in future battery plants to be covered under the new UAW master contract as well.
Despite these improved contract conditions, the UAW maintains workers are entitled to their fair share of record profits and will only settle to terms once those conditions are met. Currently, there are over 30,000 UAW members on strike across 22 States. The latest walkout has targeted Ford’s Kentucky truck plant, a profitable location that UAW members hope will send a clear message.
What Does This Mean for the Auto Industry?
It didn’t take long for the effects of the strike to be felt. During the first two weeks, an estimated $3.95 billion in economic losses were sustained, according to a report by the Anderson Economic Group. GM also shares that the strike cost them approximately $200 million in the first week.
The first to feel the effects have been workers, as nearly 4,000 auto workers have been laid off across all three companies. Third-party suppliers that help manufacture new vehicles have also felt the monetary losses following the strikes.
Next to feel the impact of the strike will be everyday consumers. Luckily, the advantage of time has kept consumers from feeling these high prices just yet. If strikes continue and a resolution is not met, consumers could soon see higher price points on both new and used vehicles.
How Car Dealerships Are Navigating UAW Strikes
Step foot into your local car dealerships, and you likely won’t feel the impact of the strike just yet. However, if the striking continues on into this year’s fourth quarter, you may begin to notice things like higher price tags on new and used vehicles and fewer new cars on the lots.
Luckily, car dealerships will be able to navigate the obstacles of the UAW strike. Many dealerships also stand in solidarity with the auto workers and are more willing to adapt to this ever-changing negotiating landscape.
If worst comes to worst and there are fewer new models to shop from, many car dealerships will still be able to pair drivers with the right vehicle thanks to comprehensive used car selections.
All in all, a quick resolution to the UAW strike is the best way to keep dealerships across the nation from having to adapt to paused production. Until then, both the UAW and the Big Three will continue to inch closer to final agreements.
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