UAW strikes against Big Three automakers

As the clock struck midnight on Friday, September 15, 2023, the UAW strike began with 13,000 of its 145,000 members striking the Big Three automakers – Ford, GM, and Stellantis – at the following three plants:

• Ford’s Michigan Truck plant in Wayne, Michigan – 3,300 strikers
• Stellantis’ Toledo Assembly complex in Ohio – 5,800 strikers
• GM’s Wentzville Missouri – 3,600 strikers

According to the UAW’s website, “The Stand Up Strike is a new approach to striking. Instead of striking all plants all at once, select locals will be called on to Stand Up and walk out on strike. As time goes on, more locals may be called on to Stand Up and join the strike. This gives us maximum leverage and maximum flexibility in our fight to win a fair contract at each of the Big Three automakers. Locals that are NOT called on to join the Stand Up Strike will keep working. We will NOT extend the contracts, so you will be working without an agreement. Click here to learn more about what that means.” 

Impact on manufacturers
Per a report on CNN, "Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts. One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant. ‘Two plants per company, you can pretty much idle North America,’ he said. Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said.”

Per a release from the National Association of Manufacturers (NAM), the strike could mean an economic loss of $5.617 billion after just 10 days, according to a new report by Anderson Economic Group; every $1 spent in the transportation-equipment sector causes another $1.59 to be spent elsewhere – for a total economic impact of $2.59, according to NAM calculations using 2021 IMPLAN data;  and in 2022, the total value-added in motor vehicles and parts in the U.S. was $171.6 billion, according to the Bureau of Economic Analysis.

Regarding state level impacts, the 2019 42-day UAW strike at one of the Detroit manufacturers resulted in an economic loss of $4.2 billion and “sent the state of Michigan into a one-quarter recession,” per reporting by The Detroit News.

UAW demands
The UAW’s reasons for the strike include:

Pay – members are seeking a pay increase of approximately 40%, stating their work contributes to record profits for the companies and they deserve their fair share.

Work – Establish a four-day work week in order to provide workers with a better work-life balance while maintaining productivity.

Benefits – Asking for improved healthcare benefits for retired autoworkers.

COLA – As living expenses increase, members are seeking cost-of-living adjustment to help them keep pace with inflation and maintain their standard of living.

Eliminate two-tiered wage structure – By eliminating this, the UAW hopes to ensure equal pay and fair treatment for all members.

These demands look to reverse some of the concessions made by workers as the federal government intervened to bail out automakers during the 2008 financial crisis.