UAW strike against Ford, GM, Stellantis cost US economy nearly $4B so far
Labor union's strike against Detroit's Big Three enters third week as losses mount
Automotive News executive editor Jamie Butters discusses the expansion of the UAW strikes and its impact on car buyers.
The United Auto Workers' ongoing strike against Ford, General Motors and Stellantis is in its third week, and has already cost the U.S. economy nearly $4 billion.
The latest numbers from Michigan economic consulting firm Anderson Economic Group released Monday show the union's strike against Detroit's Big Three in the first two weeks amounted to $3.95 billion in total losses.
United Auto Workers members strike the General Motors Lansing Delta Assembly Plant on Sept. 29, 2023, in Lansing, Michigan. (Bill Pugliano/Getty Images / Getty Images)
The breakdown shows the work stoppage has cost workers $325 million in direct wages, while automakers collectively lost $1.12 billion, dealers and customers lost $1.2 billion and suppliers took a $1.29 billion blow.
"Suppliers were particularly hard-hit by the UAW's strategy of announcing specific plants to be struck just hours before they were shut down," AEG's principal and CEO, Patrick Anderson, said in a statement. "The shutdown of 38 parts distribution centers also crimped dealership service operations and, of course, caused more UAW workers to lose wages."
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AEG said it expects Ford will face much higher losses from the strike moving forward, after the automaker was spared in the second round of the strike escalation. But the UAW's shutdown of a second Ford assembly plant on Friday be "significantly more costly" for the company, the analysts said.
A United Auto Workers (UAW) member on a picket line outside the Ford Motor Co. Michigan Assembly plant in Wayne, Michigan, on Friday, Sept. 15, 2023. (Photographer: Emily Elconin/Bloomberg via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.81 | +0.09 | +0.79% |
The UAW launched its simultaneous but limited strike against Detroit's Big Three on Sept. 15, starting with a Ford plant in Michigan, a GM plant in Missouri and a Stellantis plant in Ohio.
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In the union's second round of strike targets on Sept. 22, Ford was spared while union leadership, led by President Shawn Fain, told members to walk off the job at 38 parts distribution facilities for GM and Stellantis.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| STLA | STELLANTIS NV | 12.85 | 0.00 | 0.00% |
But the union targeted Ford again in its latest expansion on Friday, announcing the shutdown of the automaker's Chicago assembly plant along with GM's assembly facility in Lansing, Michigan.
Striking United Auto Workers (UAW) members from the General Motors Lansing Delta Plant picket in Delta Township, Michigan U.S. September 29, 2023. (REUTERS/Rebecca Cook / Reuters Photos)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.67 | +0.79 | +1.44% |
Following the escalation, Ford executives warned in a media briefing that a prolonged work stoppage at its assembly plants would not only hurt the company, but could lead to as many as 500,000 workers at suppliers being laid off.
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AEG's Anderson said as the strike continues to impact more people who are not involved in the labor dispute, the UAW's support will begin to wane with the public.
"When the innocent bystanders begin to feel it, it will affect the generally supportive sentiment Americans have been expressing about the UAW’s demands thus far in the strike," he said.