United Auto Workers strike: cost to US economy sets new record
UAW's strike against Ford, GM and Stellantis has already caused more economic losses than any other strike this century
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 union's strike against Detroit's Big Three automakers is now in its fourth week and has already cost the U.S. economy more than any other auto industry strike this century.
Michigan economic consulting firm Anderson Economic Group (AEG) reported Monday that losses from the union's strike against Ford, General Motors and Stellantis reached $5.5 billion as of the end of the third week, topping the previous record of $4 billion, which was the total-estimated hit the economy took during the union's monthlong strike against GM in 2019.
UAW members protest in support of the union strike at the Ford Assembly Plant on the South Side on Oct. 7, 2023 in Chicago. (Jim Vondruska/Getty Images / Getty Images)
The breakdown shows the UAW's ongoing simultaneous, but limited, strike against the Big Three has cost workers $579 million in lost wages, while automakers have collectively lost $2.68 billion, dealers and customers lost $1.26 billion, and suppliers alone have lost $1.6 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 58.53 | +2.85 | +5.12% |
| F | FORD MOTOR CO. | 11.18 | +0.38 | +3.47% |
| STLA | STELLANTIS NV | 13.04 | +0.20 | +1.52% |
STEEL INDUSTRY DENTED BY UAW STRIKE AGAINST DETROIT'S BIG THREE
"The third week was more costly than the last 2 because we saw additional factories shuttered and parts shortages reported at dealerships," AEG’s principal and CEO Patrick Anderson said in a statement. He added that "The stress suppliers are under has become acute, with more than 30% reporting that layoffs have already begun."
UAW members attend a rally in support of the labor union strike at the UAW Local 551 hall on the South Side on Oct. 7, 2023 in Chicago. (Jim Vondruska/Getty Images / Getty Images)
AEG pointed to a recent survey conducted by vehicle suppliers association MEMA, which found "Nearly 30% of surveyed vehicle suppliers have laid off some direct labor employees as a result of the strike, and "Additional suppliers will initiate layoffs with more than 60% expecting to begin layoffs by mid-October."
Ford warned during week two of the strike that if it is prolonged, up to 500,000 supplier employees could be laid off. Automakers have already laid off thousands of their own workers as a result of the work stoppages at some plants, as production at other facilities remains halted.
GM ESTIMATES A $200M LOSS SINCE UAW STRIKE BEGAN
The UAW launched its strike against the Big Three on Sept. 15, beginning with targeting one plant at each automaker, and added further strike targets the next two weeks.
UAW members attend a rally in support of the labor union strike at the UAW Local 551 hall on the South Side on Oct. 7, 2023 in Chicago. (Jim Vondruska/Getty Images / Getty Images)
In UAW President Shawn Fain's latest weekly address to members on Friday, he announced the union was hitting pause on further escalations for the time being, saying progress was being made in contract negotiations with the manufacturers.
Currently, around 25,000 of the 150,000 UAW members employed by the Big Three are on strike, and Fain reiterated that the union is willing to expand the strike nationwide if talks drag on.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business' Grady Trimble contributed to this report.