United Auto Workers strike: Cost to US economy tops $9 billion
Costs mount as UAW's strike against Ford, GM and Stellantis approaches sixth week
Comodo Motors general manager Jordan Baker joins The Big Money Show to discuss the impact on auto dealers and car buyers from the ongoing UAW strike.
The United Auto Workers' simultaneous, but limited, strike against Ford, General Motors and Stellantis has now cost the U.S. economy over $9 billion, which is more than twice the previous record for an auto industry strike this century.
The latest data released Monday from Michigan consulting firm Anderson Economic Group show the union's strike against Detroit's Big Three cost the auto industry alone some $9.3 billion as of Oct. 19, which marked the strike's fifth full week.
UAW members protest in support of the strike at the Ford Assembly Plant on the South Side of Chicago on Oct. 7, 2023. (Jim Vondruska / Getty Images)
A breakdown of the numbers shows the UAW's strike has so far cost workers $488 million in lost wages, while the automakers have collectively lost $4.18 billion. Dealers and customers are out a combined $1.86 billion, and suppliers have now taken more than a $2.78 billion hit.
"The cost of this strike is now double that of the 2019 UAW strike against General Motors, with significant layoffs among supplier firms," AEG principal and CEO Patrick Anderson said in a statement. "Lost wages of striking workers and those laid off because of the strike are nearing a half billion dollars."
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Anderson pointed to AEG's warning two weeks ago that if the strike was prolonged, it would force manufacturers to delay or cancel investments. "We've now seen GM, Ford, and Stellantis announce such actions," he said. "Many more are likely if the strike continues."
Members of the UAW hold a practice picket in front of Stellantis headquarters in Auburn Hills, Michigan, on Sept. 20, 2023. (Matthew Hatcher/AFP via / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.80 | +0.07 | +0.65% |
| GM | GENERAL MOTORS CO. | 55.68 | +0.81 | +1.48% |
| STLA | STELLANTIS NV | 12.85 | -0.01 | -0.04% |
The UAW launched its strike against the Big Three on Sept. 15, starting with one major assembly plant at each manufacturer. The union has gradually added more strike targets as contract negotiations continue without any agreements in place.
The union targeted another Stellantis plant on Monday morning, bringing the total number of UAW members striking across the Big Three to 40,000. In total, the automakers employ nearly 150,000 workers who are represented by the union.
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The shutdown of the production lines from the strike have led to layoffs at other plants where work has dried up. Strike-related layoffs have now reached 6,000 at GM, 2,730 at Ford, and 1,520 at Stellantis.
UAW president Shawn Fain joined union members at a rally in Chicago on Oct. 7, 2023. (Jim Vondruska / Getty Images)
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UAW President Shawn Fain said Friday in his weekly address to members that although the union has received record offers from the Big Three, union leadership believes there is "more to be won" from the automakers.
FOX Business' Sarah Rumpf-Whitten contributed to this report.