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Navigating the Economic Storm

Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

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US Auto Workers Threaten Strike at Big Three

September 07, 2023

US auto workers in the United Auto Workers (UAW) union plan to strike on Friday, September 15, unless new contracts are agreed with Detroit’s Big Three automakers.

  • Following high auto profits over the pandemic and stagnant compensation since the 2008 financial crisis, the union demands substantial increases to wages and benefits, in addition to structural changes on tiering of employees, retiree medical benefits, and union representation at new battery plants.
  • Some automakers have been slow to respond, with the UAW filing a complaint last week of unfair labor practices against Stellantis and General Motors for failing to make counteroffers. The companies are expected to push back significantly as full union demands could potentially reduce the Big Three’s operating margins in 2026 by one-third.
  • The negotiations also reflect tensions in implementing federal initiatives focusing on domestic production while maintaining high-quality jobs, as automakers face increasing cost pressures in their shift towards launching electric vehicle (EV) fleets. 

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Authors

Dr. Lori Esposito Murray

Dr. Lori Esposito Murray

Senior Fellow for National Security & Managing Director of CEO Programs

Read BioDr. Lori Esposito Murray

Mitchell Barnes

Mitchell Barnes

Economist

Read BioMitchell Barnes

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