The United Autoworkers union set a new strike deadline late last night, according to The Street.
What’s going on: In a video post on X, “UAW president Shawn Fain said [the union] would unveil more strike targets, with more union members participating, by noon eastern time Friday failing significant progress in talks with Ford, General Motors and Chrysler-owned Stellantis.”
- After negotiations for a new four-year labor contract failed late last Thursday, the UAW—which represents almost 150,000 U.S. autoworkers—ordered a walkout from vehicle plants belonging to the “Big Three” carmakers in Michigan, Missouri and Ohio.
- About 12,700 workers are now picketing assembly lines throughout the Midwest.
- Each of the vehicle manufacturers has put forth offers in recent days, and each has been rejected by the union, the demands of which include a sizable wage raise and a 32-hour workweek at 40-hour-a week pay.
Why it’s important: A 10-day strike of 143,000 UAW members against the three vehicle manufacturers could mean an economic loss of $5.617 billion, according to a recent report by Michigan-based consultancy Anderson Economic Group.
- A protracted strike this year would put “the state of Michigan and parts of the Midwest … into a recession,” Anderson Group CEO Patrick Anderson told the news outlet.
Our take: “ The economic harm produced by a strike goes well beyond GM, Ford and Stellantis,” said NAM Vice President of Domestic Policy Brandon Farris.
- “Numerous small and medium-size manufactures are already feeling the effects. The NAM encourages a swift resolution. Let’s get everyone back to work building products that our country relies on.”