The UAW strikes autoworker contract ev-ford gm-stellantis: a nightmare situation for GM, Ford, and the champagne was on ice

Brandon Szcesniak is a 21-year-old member of the union who works at Ford’s Wayne plant. It is similar to a revolving door. it’s not a career anymore, it’s a job. They want us to buy a Ford, but how can we afford one?

The UAW has struggled to find a foothold at the plant as it operates with nonunion labor. The company was accused by the National Labor Relations Board of violating labor law by preventing workers from discussing pay and working conditions. There have been many complaints filed against them by the OSHA.

“Lets be clear: this is a potential nightmare situation for GM and Ford as both 313 stalwarts are in the early stages of a massive EV transformation path for the next decade that will define future success,” said Dan Ives of Wedbush. He added that the “clear winner was… The champagne was on ice.

Source: The EV revolution is on hold as the ‘Big Three’ autoworkers go on strike

Why is the UAW on strike? The Big Three are going to lose billions of dollars in revenue from electric cars, heating, and seating, and heating

Sam Fiorani, a production forecaster at the AutoForecast Solutions, told Reuters that this is a symbolic strike rather than a damaging one. But not all of them were in agreement.

The Big Three automakers themselves may not have the most to fear from a prolonged strike. The 36-day strike against GM cost the company more than 3 billion in losses, which is pocket change. But the damage might be most severe for smaller auto suppliers further down the supply chain who sell components that go into larger systems, like seating or heating, and their own suppliers of raw materials. The Motor & Equipment Manufacturers Association says almost 5 million Americans work in auto parts manufacturing.

Since the beginning of the year, the UAW notes that all three companies made record profits and that they want their fair share.

The UAW went on strike at midnight on Friday, which is bad news for the Big Three’s plan to spend billions of dollars on electric cars.

Those plans are now on hold, as workers at companies like Ford and GM take to the streets in order to request a piece of the profits that come from SUVs and trucks.

The UAW is going to proceed with its targeted walk out. Workers at three plants — GM’s Wentzville, Missouri, assembly, Stellantis’ Toledo, Ohio, assembly complex, and Ford’s Wayne, Michigan, assembly plant — were the first to go on strike. If contract talks do not progress, the UAW will try to hold off on a more costly national strike, but that is still on offer, said Shawn Fain, UAW president.

Ford said it had a counterproposal from the union less than 24 hours before the contract expired, but that there was little movement from the previous proposal.

“If implemented, the proposal would more than double Ford’s current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the United States that utilize non-union-represented labor,” Ford said in a statement.

Covid-19: What will we learn from the giants of Detroit if there is a 20% wage increase and why will automakers decide to stop sending us more?

The CEO of GM said that the two sides were still far apart on some issues. On Friday, CBS This Morning, Mary Barra said they still have a ways to go with the offer they put on the table.

The analysts states that theBig Three spend $65 to $68 an hour on total labor costs, including benefits, while theirnon unions only spend $55 to $50 an hour.

He said if there is a 40% wage increase and it is approved, it will have a major impact on the cost of vehicles and could lead to higher prices for EV buyers. The costs of EV’s out of Detroit is a great advantage, and would result in demand Churn in our opinion as there would be many new EV’s coming out.

If we had a more intense strike that drags on longer, does that mean that the automakers are going to rethink where they invest? Ehrlich says so.

“There’s never a good time for a strike, but suppliers have been through proverbial hell over the last three and a half years,” says Mike Wall, an automotive analyst with the research firm S&P Global Mobility. There was the pandemic, but also a related shortage of chips that was hard because vehicles need more computing components, a commodity squeeze and interest rate hikes.

If automakers fail to reach an agreement with the UAW, a nasty domino run will begin inside the auto supply chain over the next few weeks and months. One way that the giants of Detroit will try to stop their suppliers from sending new parts is by telling them to stop sending components. “They’re not public companies and may not have access to the cash they will need to hold themselves over if the suppliers say, ‘Don’t send us anymore of the stuff,’” says Erik Gordon, a professor at the University of Michigan Ross School of Business.

In addition to making everyone an epidemiologist, the Covid-19 pandemic schooled the public on the world-spanning network of manufacturers, assemblers, and shippers behind just about every consumer good that arrives on your doorstep. Or a driveway. Car prices soared as automakers struggled with a supply chain jammed up by worker shortages, chip shortages, and shipping delays.

The UAW Strike Could Have Ripple Effects across the Economic: How the Automakers Aren’t Ready for the New Year

The striking workers won’t be getting their paychecks until they return to work. They will get $500 a week for their work from the union. But on average, that will replace only about 40% of their lost wages. That will likely mean reduced spending in communities where striking workers live.

More cars are on dealers’ lots now than there were a year ago, when supplies were still severely limited by the COVID-19 pandemic and a shortage of computer chips.

Ford has enough vehicles on hand to last about two months. The inventory of the two companies is a little different. So there’s a cushion, but it won’t last indefinitely.

The new-car price went up in August for the first time in four months. The strike could affect production, but nonunion automakers such as Honda and Volkswagen will continue to make cars during the strike.

This is a small impact, but meaningful, and it’s in relation to higher oil prices, higher mortgage rates, the end of the student loan payment moratorium, and a potential government shutdown.

The automotive industry is relatively stable, unlike the delivery giant and freight railroads, which were threatened with strikes in the last year.

After a protracted machinists strike in 2008, for example, Boeing shifted some aircraft production to a new plant in South Carolina, a fiercely anti-union state.

Source: How the UAW strike could have ripple effects across the economy

“Maybe you skippe out to dinner”: An economist at the University of Michigan says “There’s not enough money for a strike”

An economist at the University of Michigan says “Maybe you skip going out to dinner.” “People say,’I’ve prepared for a strike.’ There’s very little you can do to save for a strike. Obviously, the $500 a week helps. But it’s not making up for a full paycheck.”