Time is running out for the three major U.S. carmakers to reach a new labor agreement with the United Auto Workers union.
General Motors, Ford and Stellantis have until midnight Thursday to reach a deal with the UAW before its 146,000 union workers walk off the job. Last month, union members overwhelmingly approved a strike against America’s “Big Three” automakers that could shut down assembly lines through Friday.
Workers are demanding more paid vacation, a 32-hour workweek, double-digit wage increases, the elimination of pay tiers and the reinstatement of cost-of-living adjustments. UAW President Shawn Fenn said that if those requirements are not met by September 14, “we will have to do what we have to do.”
While the Biden administration has expressed hope that a deal will be reached before Thursday’s deadline, one expert told Scripps News he is not as optimistic.
Wayne State University business professor Merrick Masters, who has studied labor issues, says there is a slight chance that the two sides could come to an agreement, but “it will be difficult for the parties to resolve their differences”.
“Over the past 40 years, the top 1% have seen their real wages, adjusted for inflation, increase by more than 200%,” Masters said. “The bottom 90% have only seen their real wages increase by 28%. That’s why they’re pushing for higher wages. And I think that resonates across the board.”
The strike can also have a big impact on the economy. According to a recent analysis of Anderson Economic Group, A potential UAW work stoppage could cost the “Big Three” more than $5 billion in just 10 days. The UAW reportedly has $825 million in its strike fund and has increased strike wages to $500 a week.