Big Three Strike Update: What The UAW Wants & The Ramifications Of A Shutdown
A full-on shutdown in new vehicle production could have a major impact on each OEM’s future EV goals.
The history between The Big Three and the United Auto Workers Union is intertwined with periodic compensation disputes, but who’s being greedier here? While the UAW’s demand for a 40-percent wage increase (over four years’ time) seems excessive, so do the better than 30-percent compensation increases that’ve been awarded to top executives, which is exactly what happened with GM’s CEO during the period from 2018 to 2022.
UPDATE: with Friday’s deadline looming, the UAW has reportedly dropped the wage increase into the mid 30-percent range.
BIG Numbers
As many as 146,000 employees could go on strike, beginning this Friday, if a deal can’t be struck. It’s been reported that a strike of this magnitude, even if it only lasts 10 days, could cost the Big Three $5 Billion. Each week, Ford’s new vehicle production output would drop by 65,000 units. GM’s would drop 55,000 per week. And you probably already know that a production stoppage will result in fewer vehicles being present on dealer lots which, with the laws of supply and demand, will inevitably lead to higher new car prices…
The EV Connection
The automakers have disclosed that large hikes in pay for UAW employees has the potential to cut into the investments required to continue the overall transition to EV’s…
