By Natalia Rueda 
The United Auto Workers (UAW) union has escalated its three-day strike at the three major U.S. automakers – Ford subsidiary in Wayne (Michigan), General Motors (GM) in Wentzville (Missouri) and Stellantis in Toledo (Ohio) – and the implications for the U.S. economy are far-reaching. The strike, which began on Friday, involves 12,700 of the 150,000 UAW members at the companies and is the first of its kind in the automakers’ history.
UAW President Shawn Fain is looking for a wage increase of at least 40% for its members, which he feels is justified given the “huge profits” of the companies in recent years. So far, GM and Ford are only offering a 20% increase in wages, while Stellantis has increased their offer to “almost 21%.” The union has also requested shorter workweeks and the reinstatement of defined benefit pensions, as well as job security as automakers transition to electric vehicles.
Analysts are concerned that if the strike is not resolved soon, plants that make more profitable pickup trucks, such as Ford’s F-150, GM’s Chevy Silverado and Stellantis’ Ram, could be targeted next by the UAW. Such a move could deal a potentially devastating blow to the nation’s auto industry.
President Joe Biden has expressed his support for the union, citing that automakers have not fairly shared record profits with their employees. The UAW could potentially make their $825 million strike fund last longer by focusing on three factories, one at each of the three automakers.
The impending economic and political consequences of a prolonged strike indicate the importance of the situation. With no signs of progress yet, negotiations must continue in order to avoid the significant damages a strike could impose.
With information from DW