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GM Authority

UAW Strike Has Cost $4 Billion So Far, Says Industry Analyst

The ongoing United Auto Workers (UAW) strike has reportedly cost the U.S. economy nearly $4 billion so far, according to a new analysis. Now entering its 18th day, the UAW is striking at all three of the Big Detroit automakers (GM, Ford, and Stellantis), a first for the labor union. The UAW has expanded its strike twice since walkouts began last month.

UAW members demonstrate during the strike.

According to Michigan-based economic consulting firm Anderson Economic Group, the UAW strike has resulted in $325 million in lost wages, $1.12 billion lost between GM, Ford and Stellantis, $1.29 billion lost to suppliers, and $1.2 billion lost for dealers and customers, bringing the grand total to about $3.9 billion.

It’s estimated that the UAW’s strike expansions are resulting in rising average losses with each subsequent week. The UAW initially announced that it was striking following the expiration of previous labor contracts on September 14th, targeting all three of the Big Detroit automakers, including the GM Wentzville Assembly plant in Missouri. The UAW is using a targeted strike strategy wherein autoworkers at certain facilities are called on to walkout, as opposed to all UAW members at all facilities.

The week following the initial walkouts, the UAW targeted 38 parts distribution sites belonging to GM and Stellantis, opting not to expand its strike against Ford, citing substantial progress in contract talks with Ford. Finally, last week, the UAW expanded the strike again, this time targeting the GM Lansing Delta Township plant in Michigan and Ford’s Chicago Assembly plant in Illinois, opting not to expand the strike against Stellantis, citing more substantial progress with Stellantis.

“Suppliers were particularly hard-hit by the UAW’s strategy of announcing specific plants to be struck just hours before they were shut down,” said AEG CEO Patrick Anderson in a statement. “The shutdown of 38 parts distribution centers also crimped dealership service operations and, of course, caused more UAW workers to lose wages.”

It’s estimated that of the 146,000 autoworkers employed across all three of the Big Detroit makes, 25,300 UAW members are currently on strike.

The strikes have resulted in GM furloughing workers, with the automaker citing a lack of work stemming from the UAW walkouts. GM recently furloughed more than 160 workers at the automaker’s Parma, Ohio Metal Center and Mario, Indiana Metal Center, and previously idled production at the GM Fairfax plant in Kansas.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. You’ve already lost billions and the UAW is not being reasonable, essentially confirmed by the leaked text messages from one of the UAW bosses. Let the salaried employees build what they can and ship what they can, then lock everyone out. Their strike fund is not a bottomless pit. It will be empty quicker if they are forced to support every laid off member. When it gets down to its last million or so, I am confident that the union will be a little more reasonable and not be as quick to turn down a 20% raise with COLA adjustments.

    If I was on the OEM side, I would match Fain’s YouTube videos and for every plant he targets, I would shut two more down. I would also have a countdown display that shows three things:

    1. A 25% Raise Figure
    2. A $5000 Contract Ratification Bonus
    3. The accumulating losses for the company.

    As the loss number increases (much like our national debt ticker), the 25% raise figure and the $5000 signing bonus would decrease proportionately. We don’t start at the bottom and negotiate up, we give our best record offer and force the union to come to its senses before all the members get is a $10 Burger King gift card. Maybe that is why I’m not on the negotiating committee, but it is fun to dream.

    Reply
  2. Thank God GM has Strong leadership that can stand up to these UAW Thugs. Lock the “workers” out and KEEP them out

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    1. Thugs Dave when the company CEO takes in $30 million dollars a year plus stock shares from the company…. that’s more then the president of the United States makes… and they don’t want to share the wealth with the workers but full time, part time, and management get nice fat bonuses every year! The thugs are the CEO’s and corporate scum… and don’t give me that I went to school nonsense because like I said the president probably needs more education then these CEO’s but makes much less!

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      1. If you work for “Corporate scum”, then go work somewhere else or start a bussiness. All you do Chevy man is make cars more exp for everyone else, drive jobs over seas and lead companies like GM to Bankruptcy. UAW is the scum

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        1. Hey Dave you started your own business good that’s your problem no suck it up buttercup and stop complaining about paying your employees. And the UAW did not lead to bankruptcy GM old poor management and making a car for everyone at every price point that did not sell well GM also prior to bankruptcy has to many different divisions of brands Pontiac was selling the same thing as Chevy the interiors on those cars where a messs. I love Chevy vehicles but will say prior to bankruptcy nothing they sold really appealed to me. You also talk about vehicle price what about a $50,000 dollar Kia the telluride gets that high if not more… I thought Kia was a value brand , Toyota used to make inexpensive vehicles not anymore even a Corolla is expensive and they are non union. As I said corporate scumm that makes to much money!

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  3. Peanuts. Wake me when it’s $50 or $100 billion.

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  4. Fire everyone and reorganize. LOL

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  5. So does that mean the union employee profit sharing will be a massive bill owing money back to the company now?

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  6. First of all I work a union job and the head of the UAW is blowing smoke there is no way on earth they are going to get a 40% raise increase…if that’s the case then I want the same from union lol! A four day work week could work it just wouldn’t end on Thursday there would have to be Friday and Saturday hours for other employees maybe break it up into full time and part time. Anyway let’s get this settled and start building cars again.

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  7. Biden has let over 8 million illegals into the country, and now giving them working visa’s and advocating they get a job. So UAW be careful what your asking for as the government has immigrants standing by to take your jobs.

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    1. “They took our jobs.”
      South Park

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    2. Someone has to do the work that Americans don’t want to do. According to George W. Bush.

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  8. In the 50s and 60s the average salary of CEOs was 30 times that of the workers. Now it’s over 1,000 times! Jeez Mary, do you really need $29,000,000 that bad? You’re making $14,000 an hour, though I suppose you would say you work longer hours going to dinners and making speeches. Whatever happened to profit sharing? Tesla and the Chinese are developing new manufacturing techniques that are saving huge percentages of $$ cutting weight and improving range. Investing in your people and manufacturing processes now might be able to keep gm afloat to the 2030s…

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    1. Partly correct and partly terribly wrong. Yes, Exec’s are grossly overpaid and that should be brought into line by the Board of Directors (but it won’t). The Chinese and Musk are the worst examples in the world. Musk is just another egomaniac like Trump. The Chinese? If you like them so much, why don’t you move there?

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    2. Don’t worry Lucy, GM already pays you more than any other auto company pays their employees. Your greed will cause GM to move manufacture to Mexico or file Bankruptcy

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  9. The bottom line The extra costs ALONG with the contract that gets passed will be passed on to the consumer ,with HIGHER PRICES.

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    1. You’re absolutely correct.

      Reply
  10. Analysts ~ 🐂💩

    Reply
    1. Never take the word of an analyst unless you’ve done your own research.

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  11. For all the non union workers keep scrolling! Because for someone to complain about someone’s work day or wages are ludicrous. And for someone to call a hard American work a thug ! You can go duck yourself. I’m trying to see why everyone chooses to side with an employer that makes more and more off profits and continues to put out inferior products. The prices of cars have skyrocketed with in the past few years. Parts are cheaply purchased and produced from foreign countries. The American Auto workers have to produce more to keep up with demand. 12 plus work days, as they work on the old contracts possibly from pre COVID. So why don’t they get a raise? The CEO’ s did from profits. Low cost, low wages, non profit sharing and higher vehicle cost equal more money for the CEO’s.

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    1. Byron, what makes a line “worker” worth a 20% raise? Cars are more expensive BECAUSE UAW asks for too much. I’ve seen UAW “workers” picketing. They all look fat and lazy, and don’t possess anymore skill than the average American worker. So keep holding your company hostage. Hopefully GM automates your job and saves consumers more money

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    2. Byron I couldn’t have said it better myself thank you but we union workers make to much money… ahh no I work for UPS I am part time there for twenty five years, I know drivers and none of the full time drivers makes one hundred and forty thousand a year not even the tractor trailer drivers who make more then package truck drivers. But if you want to believe our news media go ahead but you must be very gullible. And Dave I know this morning someone pissed in your Cheerios.

      Reply
      1. Come on, Chevy Man, he doesn’t get his news from the real media. He finds it on the internet. 😂

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        1. ACZ lol 🤣 regardless of where it comes from it’s still mostly lies.

          Reply
  12. UAW workers are as useless as Postal Service workers. Lock these whining lazy, grossly overpaid employees out of the plants. Replace them with the flood of Biden’s illegal immigrants from the Southern Border. We the American automobile consumer will enjoy much less expensive and better built vehicles.

    Reply

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