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Intense labor movements have been making global headlines recently; you might be aware of the strikes in Hollywood and the film industry, but let’s to the Three Giants and United Auto Workers (UAW). UAW has taken a bold stand against automotive giants - General Motors, Stellantis, and Ford. Select plants of these powerhouse companies are facing targeted strikes, all unfolding after the union’s contracts expired .
Since July, UAW and the automakers have been discussing new . However, there has yet to be an agreement reached. In total, Stellantis has now laid off more than workers due to the strikes. Similarly, Ford has laid off over workers and GM about 2,300, affecting their workforce and approximately 13,000 employees at 90 parts suppliers of Ford.
have stopped at three Ford plants in Michigan, Chicago, and Kentucky, two GM plants in Michigan and Missouri, and a Stellantis plant in Ohio. Furthermore, UAW members are striking at GM and Stellantis spare parts warehouses across the US. The strikes aren’t confined to the USA; plants in Canada are also experiencing work . Canadian auto workers took a stand against General Motors as approximately 4,300 members of Canada’s Unifor union initiated a strike after the carmaker failed to secure a temporary agreement before the contract . This walkout adds significant on GM.
Around 34,000 out of UAW members employed by the three companies are on strike. The companies have offered wage increases of over over four years and have proposed reducing the time for new workers to reach the top wage from eight years to four. However, the union demands include raises over four years, ending wage tiers, a 32-hour workweek with 40 hours of pay, and traditional pensions instead of 401(k) plans. They also want raises restored. UAW hires missed out on defined benefit pensions and enjoyed fewer health benefits. To curb costs, the union gave up the general pay raises and cost-of-living adjustments. Top assembly workers earn an hour, while temporary staff start at $17. Despite the disparities, full-time workers receive profit-sharing checks varying from $9,716 at Ford to at Stellantis. Beyond immediate concerns, the union is also worried about potential job losses as automakers gear up production of .
As the Michigan economic consulting firm Anderson Economic Group (AEG) reported, the strike's impact on the economy has been . By the end of the third week, the losses incurred due to the union’s strikes against Ford, General Motors, and Stellantis amounted to a staggering . The breakdown reveals the extent of the damage: workers suffered losses of million in wages, automakers collectively lost $2.68 billion, dealers and customers faced a combined loss of $1.26 billion, and suppliers alone bore a substantial hit, losing $1.6 billion. The automotive sector contributes approximately to the overall US economy’s gross domestic product, encompassing its entire production of goods and services.
The ongoing strikes between the United Auto Workers and the Three Giants have taken a toll on the automotive industry nationally and . With losses reaching , it’s clear that the situation is unsustainable. The financial strain and supply chain disruptions are causing significant threats to businesses and the . This challenging time emphasizes the delicate balance between workers’ rights and industry sustainability, underscoring the need for collaborative solutions to navigate challenging times.
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