Economic Losses Exceed $3 Billion as UAW Strike Persists for 18th Day
Detroit’s Big Three automakers are facing substantial economic losses, surpassing $3 billion, as the United Auto Workers (UAW) strike enters its 18th day. Furloughs and layoffs of non-union employees are being implemented by Ford Motor, General Motors, and Stellantis. Ford has recently furloughed 330 workers in Chicago and Lima, Ohio, in addition to laying off 600 workers last month in Michigan. General Motors reported a significant increase in sales for the third quarter but has laid off over 2,100 workers across four states. Stellantis has idled nearly 370 workers, including 68 workers in Perrysburg, Ohio. The UAW recently expanded the strike to include GM’s Lansing Delta Township Assembly plant and Ford’s Chicago plant. Automakers attribute the furloughs and layoffs directly to the ongoing strike.
In a statement on Tuesday, GM expressed its disappointment regarding the negative effects of the strike, and confirmed that the impacted workers would not return until the strike is resolved. The automakers also warned of potential layoffs among auto parts suppliers if the strike continues. According to Ford’s chief supply chain officer, Liz Door, approximately 2,400 supplier employees have already been laid off, and prolonged strike action could result in up to 500,000 total layoffs.
The UAW has criticized the automakers for using layoffs as a strategy to pressure union members to accept less favorable terms. The strike, which started with nearly 13,000 autoworkers walking off the job at Big Three assembly plants, has now expanded to include a total of 25,000 striking autoworkers, constituting about 17% of the UAW’s membership. Estimates from consulting firm Anderson Economic Group suggest that the strike has cost the auto industry approximately $3.9 billion, including losses in worker wages, automaker and parts supplier losses, as well as dealer and customer losses.
The UAW’s demands include a 36% pay increase over four years, annual cost-of-living adjustments, pension benefits for all employees, greater job security, restrictions on the use of temporary workers, and a shorter work week. The union also wants the automakers to eliminate the two-tiered wage system adopted after the 2008 financial crisis. The automakers claim to have made reasonable counteroffers but argue that the UAW’s demands would hinder their ability to compete with other car manufacturers. Both sides remain open to further negotiations.
Source: CBS News
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