The auto industry strike in the United States is spreading, now involving 38 General Motors (GM) and Stellantis plants in 20 different states. This strike has prevented the distribution of spare parts, putting a strain on dealership service centers and forcing consumers to suffer the inconvenience of the situation.
The United Auto Workers (UAW), the union that represents auto workers, is leading this protest. They began the strike on September 15, involving for the first time the "Big 3" of Detroit: Ford, GM and Stellantis. The production stoppage initially affected 12,700 workers, one from each manufacturer, chosen strategically to have the greatest impact.
Now, instead of directly targeting manufacturing plants, the UAW is targeting auto parts distribution centers. This tactic jeopardizes the supply of auto parts, forcing consumers to live through this standstill.
Shaw Fain, president of the UAW, has called on U.S. President Joe Biden to join workers on the picket lines in Detroit. The union's main demands include a 36 percent wage increase, while companies appear willing to offer just over half that. Ford has offered a 20 percent raise and agreed to some benefits, but there are still significant hurdles to overcome in negotiations.
The costs of this strike are significant: Deutsche Bank estimates that GM, Ford and Stellantis have lost production of more than 16,000 vehicles since the strike began. AEG, a consultancy specializing in the sector, estimates losses of more than $1.6 billion for the three automakers.
In conclusion, this strike in the US auto industry is having a significant impact, affecting numerous facilities and generating significant losses for the automakers involved. It remains to be seen how the negotiations will evolve and whether President Biden will join the workers in their protests.
