United Auto Workers Union strike could affect state economy
(WFSB) - For the first time in history, the United Auto Workers Union is striking against the big three automakers, General Motors, Ford, and Stellantis.
Professor of Management at Quinnipiac University, Robert Yawson, says our state’s economy will be affected by this, but not to the same level as manufacturing hubs like those in the Midwest.
“It’s not time for panic now. We shouldn’t panic, and hopefully we’ll see the end of this strike, but we should all pay attention to what is going on and make adjustments as necessary,” Professor Yawson said.
Professor Yawson says the price of new cars and auto repairs could start going up.
The longer the strike goes on, the more strain will be put on our economy. Even a 10-day strike could cost our country’s GDP five billion dollars.
“It’s unlikely to single-handedly cause a national recession, but the impacts will be severe and estimates show a 10 day strike will reduce the GDP by about 5-billion dollars,” Yawson said.
Down the line, he says we could be facing higher inflation, which, as we’ve seen in recent years, can drive up prices in all aspects of our lives.
“It’s not just the auto supply chain. It will affect other aspects of the economy, even groceries,” Yawson said. “We need vehicles to haul all this product, and if they are not getting parts for service, it becomes an issue.”
It’s day 4 of the UAW Strike, and the Union is picketing outside of 3 plants, one each for GM, Ford, and Stellantis.
With no clear timeline, many are wondering how this all will impact the entire country.
“I think overall, nothing to worry about for awhile unless it really drags on,” said Greg Reilly, UConn Professor of Management.
He said CT will most likely not start to feel the impact unless the strike continues for several months.
“We’ve been through the ultimate disruption. Nothing is going to be worse than the pandemic,” said Reilly. “I think if we can make it through that, we can probably handle this strike.”
Channel 3 called and went to almost a dozen dealerships across CT and all either said no comment or did not return calls.
Negotiation; however, did pick up over the weekend.
The United Auto Workers Union is asking for a 36% raise over four years, but so far, the companies have offered 20%.
While the two sides are talking, it’s unclear how long it’ll take to come to an agreement.
Reilly said strikes like this are a natural part of the American economy.
“It’s an important tool think to make sure the system stays in balance,” said Reilly.
The CEO of General Motors says the companies have to balance workers demands with their need to transition vehicles from gas to electric.
The strike is not just about wages. The Union is also fighting for job protection and a four day work week.
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