Threat of Expanded Strike: United Auto Workers (UAW) have issued a threat to expand their ongoing strike, which initially involved workers at Ford, Stellantis, and GM. Currently, around 13,000 out of 144,000 UAW workers are already on strike, but the situation is becoming increasingly volatile.
Historic Strike: Notably, this marks the first time in history that all three major U.S. automakers are simultaneously facing strikes. Such widespread labor unrest is a cause for significant concern.
Staggering Daily Costs: The financial impact of a potential expanded strike is staggering. A strike involving the entire UAW workforce could cost U.S. automakers nearly $600 million per day. This poses a severe financial burden on the industry, especially given the economic challenges already faced.
Record-Loss of Work Days: The broader picture reveals that August saw a total of 4.1 million workdays lost due to various strikes and lockdowns, marking the highest level since 2000. Remarkably, this figure excludes the impact of UAW strikes.
Worsening Outlook: Looking ahead, the situation is expected to worsen in September. The urgency for a solution to these labor disputes is apparent, as the ongoing strikes are already having a profound impact on the automotive sector and the broader economy.
The need for resolution and stability in the labor market is increasingly critical to prevent further economic disruptions.
During August a total of 4.1 Million work days are lost due to strikes and lockdowns.. Which is the highest since 2000 and this was excluding UAW strikes…
September is gonna be worse imo pic.twitter.com/mHPq8gEiZV
— N Suresh (@NSuresh_ECW) September 19, 2023