Nationwide UAW Simultaneous Strikes Spread Across US Politics: "Dislike Both Trump and Biden"

"Not to Elect a Billionaire" Ahead of Trump's Visit
Parts Suppliers Face 50 Trillion Won Loss... Concerns Over Prolonged Impact

An unprecedented simultaneous strike by the United Auto Workers (UAW) against the Detroit Big Three automakers?General Motors (GM), Ford, and Stellantis?has entered its fifth day, with negotiations between the two sides reaching an impasse on the 19th (local time), signaling a potential expansion of the strike. As damage rapidly spreads not only to the three companies but also to related parts suppliers, concerns are growing that this could deal a critical blow to the U.S. economy.

In this situation, former U.S. President Donald Trump announced plans to visit the strike site, showing active involvement from the U.S. political sphere, which is expected to become a major variable in the presidential election landscape. The UAW is expressing a stance to block intervention from both former President Trump and the Joe Biden administration, fearing that the essence of the strike could be diluted.

On the 15th (local time), employees belonging to the United Auto Workers union are holding pickets and protesting in front of the Ford plant in Michigan, USA. [Image source=Reuters Yonhap News]

Union Wage Increase Rate 40% vs 20%... Will the Gap Narrow?

On the 19th (local time), the entrance of the Stellantis factory was barricaded due to a strike by the United Auto Workers union.
[Image source=Getty Images Yonhap News]

According to the New York Times (NYT) and others, UAW President Shawn Fain posted a video on Facebook on the day, telling union members, "If there is no significant progress by noon this Friday, we will ask more regions to stop work and join the strike," adding, "We will continue to attack companies wherever necessary."

President Fain had previously stated that the strike would start at some plants first and gradually expand if negotiations do not progress. Currently, the strike is ongoing at three locations: Ford's Bronco assembly plant in Wayne, Michigan; Stellantis' Jeep assembly plant in Toledo, Ohio; and General Motors' (GM) pickup truck assembly plant in Wentzville, Missouri. As a result, 12,700 of the total 150,000 UAW union members have joined the strike.

After failing to narrow differences during negotiations over the weekend, both sides plan to sit at the negotiating table again on the 20th to continue discussions.

The union has presented demands centered on a maximum 40% wage increase for union members, citing that the Big Three companies have made significant profits over the past four years and that CEOs have received enormous compensation. Other demands include the introduction of a 32-hour workweek, increased retirement pensions, improved welfare benefits, and better wage structures for new employees.

In response, the three companies proposed a 20% wage increase, about half of what the union demanded, but President Fain maintains that this is insufficient considering recent inflation increases.

Trump Signals Visit to Strike Site... Escalates into a Key Political Issue

[Image source=Reuters Yonhap News]

Former President Trump, currently the overwhelming frontrunner in the U.S. Republican presidential primary, announced he would visit the strike site to meet with workers instead of attending the second Republican primary debate, expanding the strike's impact into a core issue in U.S. politics.

Earlier, the Associated Press (AP) reported, citing sources, that Trump plans to skip the Republican presidential debate scheduled for the 27th and instead visit Michigan, one of the battleground states, to meet with striking workers.

Trump officially declared a boycott of the Republican presidential primary debates on the 21st of last month and subsequently missed the first debate held in Milwaukee, Wisconsin, two days later, as well as the second event.

Trump's visit to the strike site is interpreted as an attempt to appeal to the 'Rust Belt' region?a key electoral base during his previous administration. In the 2016 presidential election, Trump focused his campaign on the Rust Belt, portraying himself as a 'warrior' representing the interests of white working-class voters.

In an interview with NBC the previous day, Trump fiercely criticized the Biden administration's electric vehicle support policies, saying, "Because electric vehicles will be made in China, auto workers will not get any jobs."

Accordingly, as the presidential election approaches in November next year, this strike is expected to significantly influence the actions of leading candidates President Biden and former President Trump.

President Biden, who has shown pro-union actions, is closely monitoring the strike but has not actively intervened yet. Initially, the White House planned to dispatch senior advisor Gene Sperling and acting Labor Secretary Julie Su to Detroit early this week but withdrew the plan after President Fain dismissed White House assistance, stating, "This fight does not involve the president," and some Democratic lawmakers opposed White House intervention.

President Biden has expressed support for the striking workers, but the UAW has yet to declare support for Biden's re-election bid. President Fain has also criticized the Biden administration's transition policy to electric vehicles, saying it harms workers.

The Wall Street Journal (WSJ) pointed out that this strike highlights the conflict between the U.S. administration's agenda of supporting unions and strengthening the competitiveness of the automotive industry.

However, the UAW is not friendly toward former President Trump either. In a separate statement on the day, President Fain said, "Our union is putting all its strength into fighting the billionaire class, like Trump, who enrich themselves and fight against the economy," adding, "We cannot keep electing billionaires who have no understanding of what it means to live on a paycheck and struggle to make ends meet."

Parts Suppliers Face Over $50 Billion Revenue Hit... Prolonged Strike Could Harm Consumers

[Image source=Getty Images Yonhap News]

Separately from political movements, concerns are pouring in that the unprecedented simultaneous strike by major U.S. automakers will deal a direct blow to the U.S. economy. According to Bloomberg News, automotive analysis firm S&P Global Mobility estimates a daily vehicle production loss of about 3,200 units due to the UAW's partial strike. Automakers have warned that layoffs may occur as supply chains shrink due to the strike.

With vehicle production halted, parts suppliers to these plants inevitably face damage. Bloomberg estimates that if the strike expands, parts suppliers delivering to all three companies face a revenue risk of $38 billion (approximately 50.5 trillion KRW). At least 76 publicly traded companies supply parts to the three automakers, with 21 of them relying on these three companies for more than a quarter of their sales.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, recently told CNBC, "The immediate impact of the strike is limited, but if the strike expands and prolongs, the situation will change," predicting that if the strike spreads to 25 plants nationwide and involves 146,000 UAW members, it could reduce this quarter's gross domestic product (GDP) by about 1.7 percentage points.

The strike could also lead to higher prices for new and used cars, potentially harming consumers. Tyson Jominy, vice president of JD Power, a U.S. market research firm, told Fox News, "If the strike lasts about 4 to 6 weeks, consumers of any brand are likely to see higher prices." Currently, car prices are about 4% lower than the peak during last year's global supply chain crisis, but the strike could push prices back to that level.

"Stop the Frontline Expansion"... Ford Reaches Last-Minute Agreement with Canadian Union

[Image source=Getty Images Yonhap News]

In response to the situation, the three automakers are focusing on negotiations while minimizing damage. All three companies have consistently stated, "We continue to negotiate with the union to reach an agreement."

In particular, the three companies have been negotiating wages with the local union Unifor in Canada as well as in the U.S. When faced with the risk of a strike due to differences in views, Ford was the first to reach a last-minute agreement to prevent the strike from spreading across North America.

Ford announced that it reached a tentative agreement with Unifor, which was about to enter strike procedures due to failed wage negotiations, as of that day. Both sides extended the deadline by one day and negotiated overnight. As a result, Unifor, representing 5,600 union members, emphasized that it used "the union's strongest weapon, the right to strike," achieving wage increases, improved pension benefits, and expanded worker support.

The agreement is expected to pass through a final ratification vote by Unifor union members. Also, while Ford and Unifor were negotiating, the deadline extensions for GM and Stellantis are expected to continue, with discussions proceeding based on Ford's agreement.

This content was produced with the assistance of AI translation services.