Note: As of 9 AM, GM is up .58 or 1.72% to $34.24, while Ford is up .10 or .7% to $12.72.
Sometimes I side with the unions, but mostly I don't. In this case, the UAW has asked for too much, in my opinion. Democrats talk about greedy companies all the time, but ignore greedy workers.
The $32 an hour translates to approximately $67,000 annually, based on a 40-hour work week. According to the U.S. BLS, the median wage in 2022 was $54,132. So the plant workers are already making above-average pay, some 25% more.
They want that $32 an hour to go up some 40 percent over four years, or to about $45 an hour. This equates to $94,000 a year, based on a 40-hour work week.
The strike will initially target one plant at each of the Big Three automakers and will not involve all of the union’s nearly 150,000 members walking out at once.
Walkouts have started at a General Motors plant in Missouri, a Stellantis plant in Ohio and a Ford plant in Michigan.
More workers may be called on to join the strike as time goes on, UAW said.
Collectively, just under 13,000 workers are striking at the three plants.
The union is also pushing for making all temporary workers at the automakers permanent, cost-of-living adjustments, increases in pension benefits for current retirees and restoring pensions for new hires, among other benefits. But one of the main sticking points at the table was GM's decision to close four US factories, including a large assembly plant in Lordstown, Ohio. The sides eventually agreed to a deal that saw GM investing billions of dollars in a battery joint venture in Lordstown, which unionized with the UAW in late 2022. In return, GM was allowed to shutter three other factories.
Corporate leaders aren't happy with the union's demands, which at the high end call for a 40% wage hike. "There's no way we can be sustainable as a company" if those demands are met, Ford CEO Jim Farley told CNBC yesterday. Deutsche Bank analysts estimate the full demands would cut $1-2 billion from annual profit for the automakers. GM had a profit of less than $10 billion last year on $157 billion in revenue. Ford lost $2 billion.
Experts say the strike could cost the U.S. economy billions of dollars.
$5.4 billion. That’s how much Moody’s Analytics estimates each of the Big Three automakers could lose from halted production over the duration of a six-week strike, roughly the same amount it said General Motors lost during a 40-day strike in 2019. All three of the companies could offset those losses with supplies of “ample cash and borrowing capacity,” Moody’s said, though it warned a prolonged strike could hamper the automakers’ pushes toward producing electric vehicles, which all three have embraced in recent years as the EV market skyrockets.That is according to a new analysis from the Anderson Economic Group, a Michigan-based think tank that specializes in the economic impact of labor strikes. The report estimates that economic losses from a 10-day work stoppage could cost about $5.6 billion.
Sources for this story: Business Insider, FoxNews, Forbes, CNBC, CNN