Upcoming UAW Strike

[OutlawHemi22]

What is everyone thoughts on the pending UAW strike next week?

 

[George Bednar]

What is everyone thoughts on the pending UAW strike next week?

I work for a company that produces steel tubing from a flat steel coil. We sell a lot of tubing to the automotive industry via tier 1 and 2 suppliers. They has been a lot of concern about it internally. My fear is if it last very long it will domino thru every supplier the auto industry uses. Another note is I hear it will likely involve all of the big 3 in the US and maybe only selective automakers in Canada.

 

[bigdodge]

I work for a company that produces steel tubing from a flat steel coil. We sell a lot of tubing to the automotive industry via tier 1 and 2 suppliers. They has been a lot of concern about it internally. My fear is if it last very long it will domino thru every supplier the auto industry uses. Another note is I hear it will likely involve all of the big 3 in the US and maybe only selective automakers in Canada.

yes in years past the uaw would select one auto maker to strike against but this time it will be all three, ford, gm and stellantis.

 

[Dewey]

Neither side is giving so it could get ugly. We’ll find out next week.

UAW chief says time is running out for Ford, GM and Stellantis to avoid a strike

Work stoppage at Detroit automakers could dent the car industry and dampen broader U.S. economic growth.

www.cbsnews.com

 

[BrandonSmith]

If you're looking to buy, do it now.

 

[HSKR R/T]

At least they will be able to catch up on the chip shortage.

 

[wegasque]

I was hoping the parts suppliers could continue making parts and maybe catch up on some of the long lead-time, high backlog items. Maybe then we would only have to wait 2 weeks instead of 6 for a dealership to get a replacement part.

 

[LITTLEREBEL]

Discussions are under way with Ford on wages and benefits. Stellantis, formerly Fiat Chrysler, has yet to make a counteroffer on wage and benefit demands, he said.

The union's demands include 46% across-the-board pay raises, a 32-hour week with 40 hours of pay, restoration of traditional pensions for new hires, union representation of workers at new battery plants and a restoration of traditional pensions. Top-scale UAW assembly plant workers make about $32 an hour, plus annual profit sharing checks.

 

[Mountain Whiskey]

Elon having a new portrait done in anticipation of the strike.

 

[ZombieSlayer]

Union sounds a tad greedy demanding both a pay raise and 32 hours worked but still being payed for 40.

 

[HSKR R/T]

Union sounds a tad greedy demanding both a pay raise and 32 hours worked but still being payed for 40.

That's how Unions work. They used to be good, now it's just mostly greed

 

[n8zcc]

That's how Unions work. They used to be good, now it's just mostly greed

Yup, but the reason unions came around was because of greedy employers.

I think the UAW is a bit aggressive in their demands but they do need to at least get inflation-adjusted pay. 32 hours of work for 40 hours of pay, I don't think so. Their healthcare is beyond excellent now, and pensions, nope, let them have what everyone else has, 401s.

I hope they find middle ground because I think if they strike, the UAW will end up losing in the long run.

 

[jimothy]

I hope they find middle ground because I think if they strike, the UAW will end up losing in the long run.

I’ll bet you’re right. It’s odd that they are threatening strike at what is likely the end of a period of high profits for automakers.

So, let’s say they get large raises, pensions, and reduced working hours. Then the automakers—faced with higher labor costs, lost sales, lower productivity, continued competition from non-union and foreign automakers, a recession at some point, and losses from EVs—will face bankruptcy. The unions will be forced to make concessions, the automakers receive bailouts, recover, and we repeat the whole process all over again.

I know nothing about running or working for an automaker, but there has got to be a better, more sustainable way.

 

[LITTLEREBEL]

I’ll bet you’re right. It’s odd that they are threatening strike at what is likely the end of a period of high profits for automakers.

So, let’s say they get large raises, pensions, and reduced working hours. Then the automakers—faced with higher labor costs, lost sales, lower productivity, continued competition from non-union and foreign automakers, a recession at some point, and losses from EVs—will face bankruptcy. The unions will be forced to make concessions, the automakers receive bailouts, recover, and we repeat the whole process all over again.

I know nothing about running or working for an automaker, but there has got to be a better, more sustainable way.

Or even worst the auto makers will raise the prices to compensate.

 

[jimothy]

Or even worst the auto makers will raise the prices to compensate.

They will, to the extent they can. But they'll face the factors I mentioned, namely foreign and non-union competition and a slowing economy.

Pickup trucks will continue to have more pricing power, thanks to the Chicken Tax and the fact that after 2024, there will be only one non-union made full size truck in the US market, the Toyota Tundra.

But of course UAW workers make more than just pickups, so the automakers won't have as much ability to raise their prices. To the extent that prices do go up, that means lower sales (again, versus competing products which don't use UAW labor), which means less demand for UAW labor. So big raises today could well mean layoffs later.

 

[Darksteel165]

I know nothing about running or working for an automaker, but there has got to be a better, more sustainable way.

Stop using union workers.
If you don't treat your employees good enough they will leave\quit then it turns into paying the employees enough to keep cars\trucks getting built and sold.

As far as I know this is not skilled labor, it doesn't need to be protected like so.

The union's demands include 46% across-the-board pay raises, a 32-hour week with 40 hours of pay, restoration of traditional pensions for new hires, union representation of workers at new battery plants and a restoration of traditional pensions. Top-scale UAW assembly plant workers make about $32 an hour, plus annual profit sharing checks.

45% pay increase and a 32 hour work week would be a 65% increase in pay requirements from the company. They also would be losing 20% of production time for that 65% increase in cost.
In what universe is the UAW living in...

 

[Dewey]

Stop using union workers.
If you don't treat your employees good enough they will leave\quit then it turns into paying the employees enough to keep cars\trucks getting built and sold.

As far as I know this is not skilled labor, it doesn't need to be protected like so.


45% pay increase and a 32 hour work week would be a 65% increase in pay requirements from the company. They also would be losing 20% of production time for that 65% increase in cost.
In what universe is the UAW living in...

It’s called negotiating. You don’t ever ask for exactly what you want right of the gate. Pretty sure UAW knows they’ll never get what they’re asking for. That’s a given.

The’ll eventually settle somewhere in the middle and everyone will be somewhat happy. Don’t doubt they’ll strike for awhile but as usual loss of wages and living only on minimal strike pay tends to bring reality back to the majority needed to pass the contract.

Everyone has their opinions about unions but without them there are a lot of other non-union shops that would be paying a whole lot less and have way worse benefits without the competition from the higher paying union companies. Like unions or hate them they do have value.

 

[Mountain Whiskey]

You know if I were the conspiracy theorist type I might think that certain people in government positions, that have ties to China, who own most of the lithium mines, that make the batteries for electric cars, are encouraging this. I might think to look at what incentives might be involved.

If I were a conspiracy theorist type that is.

Dang it. Where did all the foil go? I gotta run out to Costco, I'll catch you guys in a bit.

 

[OutlawHemi22]

Yup, but the reason unions came around was because of greedy employers.

I think the UAW is a bit aggressive in their demands but they do need to at least get inflation-adjusted pay. 32 hours of work for 40 hours of pay, I don't think so. Their healthcare is beyond excellent now, and pensions, nope, let them have what everyone else has, 401s.

I hope they find middle ground because I think if they strike, the UAW will end up losing in the long run.

The problem is that not everyone has 401ks, a lot have pensions. You think it’s ok for one employee to get a pension and the guy working right next to him doing the same job to not get one?

If they strike how does the UAW lose in the long run? This is their absolute best shot at getting wage increases, COLA and pensions back. Stellantis averaged 2 BILLION a month profits for the first 6 months of this year. You have to make these types of demands when the company is this profitable. What if this ev **** fails and the big 3 take a loss, you think they’ll be getting any type of increases or retirement benefits restored when the contract is up again in 2027? Nah. This is the time to throw every demand you have at them.

 

[Rlaf75]

Or even worst the auto makers will raise the prices to compensate.

They will most definitely do that regardless. Just like the grocery stores and the fast food restaurants that are now paying 15 per hour. Christ I wanted a snack tonight at work so I went to mcdonalds. $7 for a soda and French fries lol