In a first-of-its-kind move, the influential United Auto Workers (UAW) union will simultaneously strike at factories of the three major American car manufacturers General Motors, Ford and Stellantis. The work stoppages started on Friday evening.
During negotiations, the UAW, which has about 150,000 members, is demanding a 36 percent income increase over four years. The employer side was prepared for increases of up to 20 percent over four and a half years. However, new UAW President Shawn Fain emphasized that the offers were inadequate given high inflation and the companies’ healthy profits.
A bigger strike could get Biden into trouble
Production is currently halted at the GM plant in Missouri, a Stellantis plant in Ohio and a Ford plant in Michigan. The work stoppages affect several popular models, such as the Jeep Wrangler. The labor dispute also poses a dilemma for President Joe Biden: He has traditionally been very pro-union, but a setback for the U.S. economy could dim his hopes of re-election in just over a year.
According to the US President’s Office, Biden spoke with the union and car company boards of directors on Thursday about the status of collective bargaining. According to a report in the Washington Post, the government is currently preparing emergency aid to help smaller auto suppliers in the event of a strike by major US automakers. The White House has not yet commented on this.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
