TL/DR –
The United Auto Workers Union (UAW) has gone on strike after failing to secure a contract agreement with General Motors, Ford, and Stellantis. Around 13,000 union members are demanding a 36% pay rise over four years, improved benefits, shorter work weeks, and the abolition of tiered pay. With Michigan making up 19% of all U.S. automotive production, the strike is expected to greatly affect the state’s economy, especially if more plants join the strike.
United Auto Workers Union Strikes Over Contract Disputes with Big Three Automakers
The United Auto Workers Union (UAW) has initiated a strike against the Big Three automakers: General Motors, Ford and Stellantis after unsuccessful contract negotiations. Approximately 13,000 union members walked out on Friday, with the UAW demanding a 36% pay hike over four years and improved benefits.
Stand Up Strike: A New Protest Approach
Deploying a “Stand Up Strike,” tactic, the UAW will call members from different plants to strike as required. The aim is to enhance union leaders’ bargaining power. UAW President Shawn Fain stated in a video message the strike will broaden if no progress is achieved by the week’s end.
Impact of the Stand Up Strike
Gabriel Ehrlich, director of Michigan University’s Research Seminar in Quantitative Economics, believes the Stand Up Strike extends the negotiation period to avoid severe economic impacts. Ehrlich predicted a similar impact to the 2019 General Motors strike. However, Donald Grimes, senior research specialist, warned of significant impact on Washtenaw County if the strike extends.
Michigan: The Automobile Capital
Accounting for 19% of U.S. car production, Michigan’s automotive industry accounts for 20% of employment and contributes $304 billion to the state economy annually.
Strikes’ Impact on Local Economy
President of the Detroit Regional Chamber, Sandy K. Baruah, mentioned the strike might severely impact Michigan’s economy due to its high dependency on auto jobs. Similarly, Ehrlich warned Michigan’s economy might be the hardest hit if the strike extends, affecting the automotive supply chain and the local spending pattern. Furthermore, local businesses around the striking plants might face a decrease in customers.
Strikes Inspiring Other Movements
Rackham student Amir Fleischmann, former secretary of the U-M Graduate Employees’ Organization, expressed admiration for the UAW strike and mentioned its inspiration for GEO’s strike for better pay and benefits.
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