United Auto Workers (UAW) have officially gone on strike. Over 13,000 people have walked out of the automaker manufacturing plants of General Motors, Ford, and Jeep. The union is demanding a 36% wage increase over 4 years with larger pensions and 401k retirement benefits. All automotive companies have stated those demands cannot be met. Meanwhile, the Hollywood Writers Strike is continuing and negotiations will resume next week. UPS avoided a major strike recently by guaranteeing an average pay package of $170,000 plus benefits.
If demands aren’t met for the UAW, over 146,000 workers will go on strike which can send a shockwave through the American economy. UPS understood that if they could not meet the union’s demands, there would be severe consequences. All this to say strikes are on the rise. In 2022 there were over 424 strikes, a 51% increase from 2021. American workers are blaming corporate greed, but is that really the case?
Consumer confidence in the economy is still high. Net spending is still extreme, stock markets are rising, and the world is still spinning like normal. But inflation is continuing to hurt the American worker, and companies are not raising wages at the rate many people think they should. Wage increases hit 3% average in the United States. However the Bureau of Labor Statistics shows that inflation has increased to 3.7%, outperforming wages. Workers are frustrated that companies are not paying and companies are frustrated that the economy isn’t sorting itself out.
UAW President (Center Wearing Blue) with other UAW members. Image Credits: Paul Sancya/AP Photo
With the union’s victory against UPS, other workers can see the effectiveness of strikes in this economy. The Hollywood Writers Guild may have some issues because it is not “essential” to the economy, but the UAW has leverage. Workers know that the auto companies can lose hundreds of millions if demands are not met.
The power seems to be heading back to the workers. Upset over low pay and high hours, inflation, and an economy that is confusing, we may see continued strikes into 2024. For the federal government, this should be concerning, and this administration should continue to work to solve economic issues and work with companies to come up with solutions.
Author: Joshua Cheatham
