Detroit, MI – The United Auto Workers (UAW) union is turning up the pressure on Detroit’s Big 3 automakers – Ford, General Motors (GM), and Stellantis – as over 13,000 workers walked off the job last week, shutting down three major manufacturing facilities.
The strikes come as the automakers and union struggle to agree on new four-year contracts, with UAW demanding significant wage increases and other benefits while the car companies push back against what they see as excessive demands.
With popular vehicles like the Ford F-150, Chevrolet Silverado, and Jeep Wrangler now halted on assembly lines, the work stoppages are dealing a heavy blow to the automakers’ bottom lines. Ford has already laid off 600 workers, while GM is slashing 2,000 jobs at a plant affected by parts shortages.
But as the Big 3 lose output and sales, the UAW walkouts could hand a competitive advantage to Tesla, now the world’s most valuable automaker. With new models like the Cybertruck and Model 3 Highland set for release, Tesla looks poised to capitalize as its Detroit rivals deal with labor unrest.
According to UAW President Shawn Fain, the union is demanding up to a 40% raise over four years to match the compensation gains of the Big 3’s CEOs. But with starting pay for assembly line workers over $60,000 on average, the automakers argue they must contain costs to fund their ambitious EV investments.
With European carmakers paying lower wages, the UAW strikes arrive at an inopportune time for Detroit. But Tesla and its non-unionized workforce stand to benefit as the company expands production and deliveries. Though a lengthy strike could damage the U.S. auto industry overall, it seems Tesla may emerge from the labor dispute in an even stronger market position.
