Supply chain turmoil and costlier cars - UAW strike would send shockwaves through economy
UAW strike looming with big ramifications for economy
The clock is ticking on a pending strike between the United Auto Workers union and Detroit's big 3 automakers. There's a lot to pile into negotiations between the two parties. There's also a lot on the line if workers walk off the line. It would mean shockwaves for the economy with the shutting down of a supply chain and an increase in prices for cars.
DETROIT (FOX 2) - The clock is ticking on a pending strike between the United Auto Workers union and Detroit's big 3 automakers.
There's a lot to pile into negotiations between the two parties. There's also a lot on the line if workers walk off the line. It would mean shockwaves for the economy with the shutting down of a supply chain and an increase in prices for cars.
"You know this is a big challenge," said Alan Amici. "It’s a tough time for the labor unions. It’s a tough time for the OEMs."
Amici is the president and CEO of the Center for Automotive Research. He said a strike would be disastrous for not just Ford, General Motors, and Stellantis, but for the companies that work in the supply chain that provides parts to the companies.
"These are generally the really large suppliers, and they’re well known names like Bosch and Continental and Aptiv and Eaton, these are companies that we’ve heard about, we know. They employ many employees thorough out the Midwest and thorough out the country," said Amici.
The UAW alone represents 150,000 employees. There are hundreds of thousands more that would also be affected.
And the ripples don't stop there. A strike could also mean people paying more for a new car, depending on the state of supply at the time of the strike.
"We have a lot of pick-up trucks on the ground, so you’ll probably still be able to find deals on those, but for most other segments inventory may be a bit tighter, and you may see higher prices almost immediately," said Tyson Jominy, VP of data & analytics at J.D. Power.
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Contracts between the UAW and automakers ends midnight on Sept. 14.
The union president says the goal is not to strike if he can get a fair detail for his workers. But Shawn Fain warned that without a deal, the UAW would go on strike.
He's calling for a 46% pay raise, a 32-hour work week with 40 hours of pay, and restoration of traditional pensions for new hires.
It's a lot to get done and only a week before the clock runs out.