The United Auto Workers union has gone on strike against Detroit’s Big Three automakers. It marks the first time the UAW is simultaneously picketing Ford, GM, and Stellantis plants.
The walkout involves nearly 13,000 workers from factories producing popular models like the Ford F-150, Chevy Colorado, and Jeep Wrangler. Additional strikes may follow, jeopardizing over 50% of U.S. auto production capacity.
According to analysts, the UAW is demanding substantial wage increases up to 35%, restored cost-of-living adjustments, enhanced healthcare, revived pensions, and reduced 32-hour work weeks.
If met, labor costs could surge 40-45% higher than Tesla’s non-unionized workforce. Experts believe this gives Tesla an advantage in maintaining lower vehicle prices and profits.
“In this ‘Game of Power’ between the UAW and GM/Ford, Tesla is clearly the winner,” said Wedbush Securities analyst Dan Ives.
A prolonged strike compounding supply chain woes could also hamper Ford and GM’s electric vehicle production targets for 2024.
UAW President’s Rallying Call to Striking Workers: “I’ll see you on the picket line; This is our defining moment.”
With UAW members already walking out of Ohio and Missouri plants, the auto industry faces tremendous uncertainty. The union is pressuring Detroit automakers during ongoing contract negotiations.
But the simultaneous strike action threatens substantial lost production that could impact automaker bottom lines and vehicle availability for U.S. car buyers.