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The United Auto Workers union is currently in ongoing labor talks with the Detroit Three automakers—Ford, Chrysler, and General Motors—that are set to expire at 11:59 p.m. on September 14th. The union is pushing for a new three-year contract that will provide wage increases and lump-sum payments for its members. In addition, the UAW is seeking greater job security, protection against monopolistic practices, and improved working conditions.
If a deal cannot be reached before the September 14th deadline, the union is prepared to call a strike against the automakers. During a strike, members of the union would walk off the job, halting production at all the auto plants and causing a massive disruption to the industry.
The outcome of these labor talks will not only determine the terms of the union’s new three-year contract, but also will have ripple effects on the entire auto industry. A successful strike would lead to higher wages and improved working conditions for union members, but likely to higher car prices for consumers and possibly job losses if the automakers find it difficult to maintain production levels. On the other hand, if the automakers are able to reach a deal that keeps their costs down, they may be able to avoid raising prices and keep jobs in the industry secure, but it is unclear if the terms of the new contract will meet the demands of the union.
No matter the outcome, both sides of the labor talks will be feeling the effects of a potential UAW strike, which has the potential to disrupt the entire auto industry.