The UAW strike could cause a rippling effect on the local and national economy

Published: Sep. 17, 2023 at 8:56 PM EDT
Email This Link
Share on Pinterest
Share on LinkedIn

LANSING, Mich. (WILX) - The United Auto Workers (UAW) strike against the big three is now on its third day.

Thousands of workers from the current 3 targeted plants are protesting for pay increases, better health care, shorter work weeks, and more.

“Whatever we agree to in that room really doesn’t matter because the memberships going to approve it. If the membership don’t approve it, we’ll keep going back,” UAW President, Shawn Fain.

As the days of the strike increase, so will its impact. In a statement Saturday, Ford says 600 workers were laid off from their Michigan assembly plant because of a halt in production when their paint department was called to strike. UAW President Shawn Fain responded that these workers won’t go without income and said this is only a tactic being used for the union to settle for less.

“If the companies don’t come to the pump and deliver for these members and give them their share of economic and social justice. We will amp up the pressure, we’ll take more plants out.”

Targeting more plants could affect part suppliers for GM, Ford, and Stellantis. A slow in orders could result in layoffs for those in local 724 says President, Todd Collins.

“Could be a long drown out layoff with the economy the way it is, insecurities with inflation, everything going on people are concerned obviously.”

The strike and layoffs mean less money will circulate into the communities where the plants operate. Dealerships could slowly see inventory issues if the supply begins to run low. If more plants begin to strike it could result in price increases.

Fain says CEOs of the big 3 automakers have seen pay increases by 40 percent over the last 4-years. UAW members seeing only 6% since 2019. The union is asking for a 36% increase with GM, Ford, and Stellantis offering roughly half of that.

If all 150,000 workers for the Big 3 strike for at least 10 days, it would cost the US economy roughly $5 billion, that’s according to the Anderson Economic Group.

Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.