In a significant development, the United Auto Workers (UAW) union initiated strikes at three plants owned by the automotive industry's Big Three - General Motors, Ford, and Stellantis.
The strikes began after the parties failed to negotiate a new labor agreement on Thursday night.
The strikes are taking place at a General Motors plant in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford plant in Wayne, Michigan. UAW President Shawn Fain stated that plants not involved in the strike would continue operations without a contract.
The UAW union announced the commencement of the "UAW Stand Up Strike" at all three Big Three plants on X, formerly known as Twitter, shortly after midnight on Friday. Fain believes this strategy will keep the automotive corporations on their toes, with the union leadership deciding on further strikes.
A rally involving UAW workers is scheduled for Friday at 4 p.m. ET.
The primary bone of contention between the union and the corporations is a demand for higher wages. Fain revealed that the union is advocating for a general pay raise of over 40% for rank-and-file members over a four-year period.
Currently, full-time assembly plant workers at Ford and GM earn $32.32 per hour, while part-time workers make approximately $17 per hour. Full-time employees at Stellantis earn $31.77 per hour, and part-time workers earn nearly $16 per hour.
The union is also advocating for the permanent employment of all temporary workers at the automakers, cost-of-living adjustments, increases in pension benefits for current retirees, and the reinstatement of pensions for new hires, among other benefits.
Fain described these demands as the "most audacious and ambitious list of proposals they've seen in decades."
According to an analysis by the Anderson Economic Group, a Michigan-based think tank specializing in the economic impact of labor strikes, the strike could potentially cost the U.S. economy billions of dollars. The report estimates that a 10-day work stoppage could result in economic losses of approximately $5.6 billion.
"Even a short strike would impact economies throughout Michigan and across the nation," stated Patrick Anderson, CEO of the Anderson Economic Group. This figure includes manufacturer losses of $989 million and lost direct wages of $859 million, but does not account for strike pay, unemployment benefits, unemployment taxes, income taxes, government spending, or settlement bonuses.
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