What is UAW? How your plans of buying new car could be affected as auto industry strike halts production
DETROIT, MICHIGAN: Another workers’ union is on strike! This time, it is the United Auto Workers (UAW) union striking against the big three automobile manufacturers General Motors, Ford and Stellantis.
On Friday, September 15, the workers from three plants of the three manufacturers walked off their jobs while demanding better wages, job protections and a plethora of benefits they had to relinquish a decade ago when the companies were at the brink of bankruptcy.
However, the workers said that since the companies are now back to making profits, they want the companies to share these profits with them again.
Workers stopped the manufacturing process in three plants, one from each of the Big Three, in Missouri, Michigan and Ohio.
Nearly 3,600 UAW members of GM’s Wentzville Missouri, 3,300 UAW Ford’s Michigan Assemby plant and 5,800 from the Stellantis’ Toledo Assembly complex in Ohio are expected to join the strike.
The members called the strike ‘Stand Up Strike’ as they simply walked off the job, per CNN.
One union member told the news outlet, “As time goes on, more locals may be called on to ‘Stand Up’ and join the strike,” before adding, “This gives us maximum leverage and maximum flexibility in our fight to win a fair contract at each of the Big Three automakers.”
How will the strike affect your car purchase?
The CEO of Anderson Economic Group, Patrick Anderson opined about the carefully chosen plants and workers, “These were chosen carefully by the UAW and reflect a strategy that will ensure a large number of suppliers and dealers are affected, while reducing the number of UAW workers that, at least initially, are on strike and receiving strike pay.”.
Analyst Sam Fiorani of AutoForecast Solutions told the Associated Press earlier predicted that a strike of three weeks can impact the sales and shift away focus from the Big Three.
He said, “A work stoppage of three weeks or more,” before adding, “'would quickly drain the excess supply, raising vehicle prices and pushing more sales to non-union brands,” per Daily Mail.
Mainly the vehicles affected by the strike will be Chevrolet Colorado, Chevrolet Express, GMC Canyon and GMC Savana coming out of the Ohio plant of General Motors.
The Ford Ranger and Ford Bronco coming out of the Michigan factory of Ford may also see a dip in sales.
A prolonged strike may also affect the sales of Stellantis, which is known for being the manufacturer of Jeep. Sale of Jeep Gladiator and Jeep Wrangler may get hampered.
What is President Joe Biden’s opinion on the strike?
Joe Biden made an address just hours after the auto workers stopped manufacturing and urged the three automobile behemoths to share their profits with the workers, seemingly supporting the workers, per USA Today.
Biden said, “No one wants to strike,” while defending the rights of the workers who he believe have the right to bargain for fair wages as per current market conditions.
The self-declared most pro-union President in the history of the USA further claimed that while the automobile companies have made some offers, but he believes that, “they should go further to ensure record corporate profits mean record contracts for the UAW.”
The POTUS added, "The bottom line is that auto workers helped create America's middle class," before continuing, "They deserve a contract that sustains them and the middle class."
He also promised to dispatch the acting Labor Secretary Julie Su and White House senior adviser Gene Sperling to help the parties reach an agreement subsequently resuming the production at the factories.
