UAW strike hits GM, Ford and Stellantis

The United Auto Workers union (UAW) launched a strike against the Big Three automakers on Friday, September 15 after contract negotiations failed. The union is targeting all three Detroit automakers; Ford, Stellantis, and General Motors.  The union’s demands include: 

• Restoring defined benefit pensions for all workers. 
• 32-hour work weeks. 
• Reinstating cost-of-living adjustments.
• Job security guarantees. 
• Ending the use of temporary workers. 

The union is calling this the ‘Stand Up Strike’.  Currently, they are actively targeting one plant for each automaker.  Affected locations are Wentzville, MO (GM), Toledo, OH (Stellantis), and Wayne, MI (Ford).  All other plants remain in partial operation at this time, though the union has stated they are willing to add more locations if no agreement is made in a timely manner. 

Analysts say a prolonged and coordinated strike could cut production by thousands, potentially increasing vehicle prices and exacerbating supply-chain disruptions. 

Industries outside of automotive will also be affected negatively by the strike, as the demand for steel, chemicals, paints, resins, electronics, etc, will slow significantly. 

If the strike lasts just 10 days, analysts state the overall impact on the economy could be in excess of $5.6B.  A prolonged 6-week strike is estimated to shave 0.2% off the Q4 US GDP. 

If all 145,000 UAW members end up striking at the same time, it could cost the union more than $70M per week.  The strike fund is currently estimated at $825M.  Strikers do not receive strike pay immediately; it is available for union members to request after the 8th day of the strike. 

Sunset is working around the clock to stay ahead of these changing situations. Contact your Strategic Support team at [email protected] for more information regarding your freight or impacts on your business.