The UAW is officially on strike

On Friday, the United Auto Workers launched a strategic strike against GM, Ford, and Stellantis after the two sides failed to reach an agreement on a new labor contract.

The walkout, which marks the first simultaneous strike at all Big Three US automakers in UAW history, is being held across three factories which collectively employ ~10% of the union’s ~150,000 members.

UAW leaders say the strategy behind their initial strike is to minimize the impact on workers’ finances while maximizing the pressure placed on the Big Three to up their new contract offer. Or in other words – it’s one, two, three strikes you’re out of the ole ball game (aka making cars).

• Workers are seeking an across-the-board wage increase of 36%, the restoration of traditional pension plans, and a 32-hour week with 40 hours of pay, among other things.
• Automakers have countered by offering wage increases of up to 20% alongside concessions on the other points in the form of annual profit-sharing checks (typically $10,000+ per year).

The limited strike is already starting to have an impact. GM and Ford closed two additional factories over the weekend due to supply-chain disruptions caused by the walkout, with more plant closures expected in the near future as parts supplies dwindle.

And since US auto inventories have remained tight since the height of the Covid pandemic, experts say the ongoing strike will likely lead to higher prices for new and used vehicles over the next several weeks.