UAW strike against Big 3 is a 'combustible dilemma' says economy researcher
Economics researcher talks about risk from UAW strike against Big 3
Researcher Patrick Anderson says the future of the U.S. auto industry is also at risk where consumers could buy other non-union made vehicles from Big Three competitors. Anderson, CEO of Anderson Economic Group, foresees a combustible dilemma.
FOX 2 (WJBK) - The United Auto Workers on the picket line have their own worries as they ponder the impact on their families if the two sides don't reach an agreement soon.
Through four days the UAW has directed walk-outs at three separate plants including Ford's Michigan Assembly in Wayne as it strikes all of the Big 3.
Researcher Patrick Anderson says the future of the U.S. auto industry is also at risk where consumers could buy other non-union made vehicles from Big Three competitors. Anderson, CEO of Anderson Economic Group, foresees a "combustible dilemma."
"Combustible means it could blow up," he said. "American consumers have lots of alternatives here. Alternatives built in Georgia, Alabama, Texas and California by non-union assembly plants like Honda, Toyota, Hyundai, Tesla."
That means the Detroit Big Three could lose market share to competitors, with consumers not buying from GM, Ford, or Stellantis.
UAW President Shawn Fain is reportedly demanding the recreation of the Jobs Bank where laid-off auto workers get a check for "community service." Fain wants to go back to a defined benefit pension system.
Anderson predicts both programs could catapult the auto makers back into bankruptcy as happened in 2007.
"We had a jobs bank, it was one of those things that drove GM and Chrysler to bankruptcy," he said. "And the second one is a defined benefit package. That's something that is a bankruptcy risk."
UAW sets new deadline of Sept. 22 for 'serious progress' on Big Three negotiations
In a new Facebook video posted Monday, UAW President Shawn Fain said that if "serious progress" is not made, more Locals at plants will be called on to walk out.
And even non-autoworkers are at risk if the strike wears on, because the economy could slow down and the average consumer could see the impact with higher prices for goods and services.
Day four of the strike and questions remain like how many more and what's the ultimate fallout for the US auto industry.
