UAW is Officially on Strike, Here’s What’s Happening and How it Impacts You

The prospect of a strike in the automotive world has far-reaching implications. It affects workers who worry about job security, automakers concerned about their profits, and consumers grappling with rising prices and shortages. In other words, it’s probably just a situation that everyone would rather avoid.

In today’s landscape, where automakers are reporting record profits while inflation is eroding the real value of wages that they pay employees, and consumers are grappling with high prices and limited availability, the situation has reached a boiling point. It truly seems as if something has got to give in this fever pitch of a situation.

For those not closely following the news, major U.S. automakers and the United Auto Workers (UAW) have been engaged in prolonged negotiations for a new labor deal. However, as the clock struck midnight last night, the deadline for reaching an agreement passed without resolution. As a result, approximately 12,700 workers out of a total of about 140,000 have gone on strike. That might not seem like a lot but with nearly 10% of the labor force not showing up for work today, there will most certainly be some ripple effects.

The strike has halted production at three plants, affecting the manufacture of various cars and trucks, as several critical points of contention remain unresolved. These include the demand for a substantial 40% wage increase over the next four years and a reduction in the workweek from five days to four.

In this article, we join our hosts at TFLnow as they delve into these ongoing negotiations, providing insights into the current situation. They discuss their expectations regarding when workers might return to work and how this labor dispute impacts prospective car buyers. The coverage spans the entire spectrum of this story, offering valuable insights into what the automotive market may look like in the near future.