UAW Expands Auto Strike To Illinois, Michigan Plants
Late last week, the United Auto Workers (UAW) announced new strikes at General Motors and Ford plants, but spared Stellantis from additional strikes since, according to the UAW, there has been progress in negotiations with that company. The new actions will affect Ford’s Chicago assembly plant and General Motors’ Delta Township plant in Lansing, Mich.
The strike expansion means an additional 6,900 have stopped working. That number is in addition to the nearly 18,300 UAW members who already are on strike. This number is still a fraction of the total number of workers who could strike, however. Together the three automakers employ 238,000 workers at 260 assembly plants, manufacturing facilities, research labs, distribution centers, and other facilities across 31 states.
As Connecting the Dots reported last week, an earlier expansion of the strike had targeted 38 parts and distribution locations operated by General Motors and Stellantis. At that time, Ford was spared from strike expansions due to progress in its negotiations with the UAW.
As a reminder, the UAW’s demands include sizable pay increases, a 32-hour workweek, a return to a more traditional pension system, and enhanced benefits.
A full-scale strike would severely impact the metals industry and the broader U.S. and world economies. Argus Media as estimated U.S. consumption of flat steel could shrink by as much as 409,000 short tons (st)/month with an additional 138,200st/month of other steel consumption and 134,300st/month of aluminum consumption. Copper consumption would be curtailed another 13,800st/month.
Additionally, a recent report by Anderson Economic Group found a strike of 143,000 UAW members against GM, Ford, and Stellantis could lead to an economic loss of $5.617 billion after just 10 full days. (For context, a 42-day strike in 2019 at one of the three vehicle manufacturers put the state of Michigan into a quarter-long recession and resulted in an economic loss of $4.2 billion.)
The New York Times has said the effects of the strike could be “far-reaching” and would include:
- Rising prices on new and used Ford, GM, Chrysler, Dodge, Jeep, and Fiat cars if the strike persists and vehicle inventories wane;
- Laid-off and striking workers with less spending power, likely hurting businesses in the parts of the Midwest that rely on the auto industry the most; and
- Layoffs as suppliers of headlights, brakes, and other auto parts receive fewer orders.
Click here to read more about how a U.S.-based strike could affect Canadian parts producers.