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NowCar UAW Strike

UAW Strike Affects Auto Industry, Supplies, Employees, and Consumers

Written By, Jordan R

Wow, this year has a big case of strike fever! First, we heard news about the writers’ strike going on – and good for them – but there’s another strike going on that we didn’t expect. The biggest union in the U.S. auto industry, the United Auto Workers (UAW) union, has officially gone on strike. We haven’t seen something like this since 2019, but history tells us that this can go on for a while. Check out the impacts of the UAW strike hitting the industry.

Here’s the play-by-play: The 2023 United Auto Workers strike began on September 15, 2023. The UAW union was fighting for better pay from three automakers and tried to work out a deal. The big three are some of the largest automakers in the United States—Ford Motor Company, General Motors, and Stellantis. UAW members walked out at a GM site in Wentzville, Missouri; a Stellantis center in Toledo, Ohio; and a Ford assembly location in Wayne, Michigan. So far, 13,000 people walked out in total, and many more are expected to walk off the job at short notice.

One would expect this to make a big impact and fight for better pay, but it may backfire and have a lot of collateral damage. Big companies always like to short-change the middleman, so the result between these automakers and the UAW was obvious. The union was unable to reach a deal with the three automakers, causing the strike to commence. Now turning into an ongoing labor strike involving automobile workers, there is a lot of push back affecting employees as well as supply.

Automaker Ford is already expecting a production loss of 3,156 units, with an impact of $41 million. General Motors takes a bigger hit with a production loss of 4,446 units and a monetary impact of $58 million. Stellantis, or STLA, is seeing the largest hit with a production loss of 4,896 units and an impact of $64 million. All of this damage, and the strike has literally just begun. Reporters are expecting a $40-60 million loss in production profit per week for each automaker. At the moment, the strike seems limited to mid-sized trucks and SUV manufacturing plants, but this strike is already gaining a lot of momentum and could spread.

The union states that if every UAW member walked out immediately, the UAW union could compensate workers with enough funds to supply about 11 weeks of strike pay. That’s about two months pay, and considerably longer than the last UAW strike. The UAW strike back in 2019 lasted 40 days. Just when you think automakers will realize they’re underpaying employees, they hit back with layoffs. Ford has already laid off 600 employees because “there was no work for them because of the strike”. General Motors is already threatening to lay off 2,000 workers at a plant in Fairfax, Kansas, because of the Wentzville strike. How are threats and fear supposed to fix this mess?

We’re sorry to say that the UAW union strike will also affect consumers for NowCar. With major production loss being seen for each company, that means less product we can supply online. Stick with us and follow along for major updates for the UAW when you follow along on NowCar social media.

Photo Source/Copyright: YouTube/CNBC