The United Auto Workers Union is presently preparing for a possible strike as they operate towards reaching a deal with 3 main automakers in the United States. This news has raised issues amongst economists and public policy specialists who think that a strike would not be advantageous for the economy. Dr. David Bieri, an economist and public policy professor at Virginia Tech, emphasizes the unfavorable influence this could have on the economy.
If an agreement can not be reached, the strike is set to start on September 15. Dr. Bieri explains that if all union members choose to go on strike, they would be in a position to cover wages for about 3 months, indicating that this strike could potentially have a prolonged duration. The consequences of this strike would be important, specifically for smaller sized organizations, which could be hit really hard.
The negotiations involve 3 main vehicle makers: Ford, Common Motors, and Stellantis (formerly identified as Fiat Chrysler). According to specialists, Ford would be the most substantially impacted corporation due to its sizable UAW membership amongst its labor force.
The major demands of the 146,000 unionized autoworkers include things like wage increases and an finish to tiered wages. Really should a deal not be reached by 11:59 p.m. on September 14, UAW officials have stated that they will initiate picketing at a restricted quantity of plants.
A single element that exacerbates the possible influence of a strike is the existing inventory predicament. As a outcome of the COVID-19 pandemic, vehicle makers have lowered their inventory levels substantially. Dr. Bieri highlights that this lack of offered inventory adds an further layer of vulnerability for vehicle makers in the occasion of a strike.
It is critical to note that this strike is not anticipated to influence the truck assembly plant in Dublin owned by Volvo, according to a representative from the corporation.