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Auto Strike Looms, Threatening to Shut Detroit’s Big 3

Submitted by jhartgen@abi.org on

The United Auto Workers union and the three Detroit automakers have less than two weeks to negotiate a new labor contract, and a strike of some sort seems increasingly likely, the New York Times reported. The union’s president, Shawn Fain, has primed rank-and-file members to be prepared to walk off the job if the union’s long list of demands for improved wages and benefits are not met. A strike against one of the companies, especially a prolonged stoppage, could send an economic jolt through several Midwestern states and crimp the profits of General Motors, Ford Motor or Stellantis. G.M. workers walked out for 40 days in 2019 before reaching an agreement. A strike against all three — a step the union has never taken but one Mr. Fain has said he is willing to call for this year — could have a noticeable impact on the broader U.S. economy. “If that happens, even a short strike would impact economies throughout Michigan and across the nation,” said Patrick Anderson, the chief executive of the Anderson Economic Group in East Lansing, Mich. The talks are playing out as automakers are spending tens of billions of dollars to transition to electric vehicles, which require fewer workers to assemble than traditional gasoline-powered cars and trucks. The terms of the new contract will determine how both autoworkers and the companies fare in an E.V.-centric industry. At the same time, significant wage and benefit gains could provide a tailwind for a union movement that has been gaining strength across several industries.

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