Another major strike is looming

This week, nearly 150,000 UAW workers employed by GM, Ford, and Stellantis voted on whether to authorize a strike if a new four-year labor deal can't be reached by a September 14 deadline.

Here are some of the worker’s demands:

• 40% general pay raises over four years
• The elimination of a two-tiered wage system where new hires are paid lower wages for doing the same work
• A shorter workweek
• Restoration of pensions for new hires

According to UAW President Shawn Fain, whose union is negotiating on behalf of the workers, “record profits deserve record contracts.”

But pushback is expected by the Big Three automakers, who are in the midst of a costly EV transition and hoping to close a cost gap between them and competitors – including Toyota and Tesla – that don’t pay union wages. Total labor costs, including benefits, at GM, Ford, and Stellantis are roughly $64-$67/hour, compared to ~$55/hour for foreign automakers and between $45-$50/hour at Tesla.

💰💰💰 What’s at stake: When auto workers went on strike for six weeks at GM in 2019, the company reportedly lost $2 billion. This time around, if all negotiating workers were to strike simultaneously for ten days, it would result in an estimated total economic loss of $5 billion – a figure that wouldn’t just apply to the Big Three, since a work stoppage would cause a ripple effect throughout the supply chain.