With the UAW labor strike now stretching into its fourth week, the costs are starting to pile up, with the financial impact hitting automakers, workers, dealers, and suppliers. Now, one recent analysis places the total cost of the UAW strike to the U.S. economy at $5.5 billion, with no end currently in sight. GM recently submitted a new contract proposal to the UAW on Monday.
According to a report from Fox Business, which cites an analysis from Michigan-based economic consulting firm Anderson Economic Group (AEG), the total financial impact of the UAW strike to the U.S. economy has been estimated at $5.5 billion. AEG previously estimated the cost at $4 billion earlier this month. The current $5.5 billion estimate tops the $4 billion cost of the UAW’s strike against GM in 2019, which lasted roughly 40 days. The UAW is currently striking at all three of the Big Detroit automakers (GM, Ford, and Stellantis) simultaneously, a first for the union.
The $5.5 billion total for the current strike includes $2.86 billion lost collectively between the Big Detroit Three, as well as $579 million in lost wages for workers, $1.26 billion lost between dealers and consumers, and $1.6 billion lost for suppliers.
“The third week was more costly than the last two because we saw additional factories shuttered and parts shortages reported at dealerships,” said AEG CEO Patrick Anderson.
According to a survey from MEMA, an organization that represents more than 1,000 U.S. OEM and aftermarket supplier members, nearly 30 percent of surveyed vehicle suppliers have laid off employees as a direct result of the UAW strike.
It’s estimated that roughly 25,300 UAW members are currently striking across all three of the Big Detroit automakers. The UAW membership includes 146,000 workers across GM, Ford, and Stellantis. The UAW opted not to expand its strike against GM last week, citing GM’s agreement to include workers at the Ultium Cells battery plants in the national UAW labor agreement.