UAW strike will be felt beyond Detroit, National Association of Manufacturers warns

The largest manufacturing association in the U.S. is calling on the United Auto Workers and Detroit’s Big Three automakers to quickly reach a resolution to end the UAW’s strike against Ford, General Motors and Stellantis, warning the impact of the work stoppage will be felt throughout the country.

“The impact of this strike will echo far beyond the city of Detroit as multiple economic analyses have demonstrated,” National Association of Manufacturers President Jay Timmons said in a statement shortly after the strike began. “The small and medium-sized manufacturers across the country that make up the automotive sector’s integrated supply chain will feel the brunt of this work stoppage, whether they are a union shop or not.”

“American families are already feeling economic pressures from near-record high inflation and this will only inflict more pain,” Timmons’ statement continued. “We urge a swift resolution to end this strike and avoid further undermining the strength of our industry and harming our broader economy.”

The UAW went on strike shortly after midnight on Friday, marking the first time the union has gone on strike against all three automakers at once after rejecting each of the manufacturers’ offers for new labor deals.

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The workers are striking at a GM plant in Wentzville, Missouri; a Stellantis plant in Toledo, Ohio; and a Ford plant in Wayne, Michigan. Plants that were not called upon to strike will work without a contract, UAW President Shawn Fain said.

UAW president Shawn Fain speaks at rally

The UAW plans to strike at additional facilities incrementally if negotiations drag on, and it has not ruled out an across-the-board strike at all plants.

An extended work stoppage would be costly not only for the auto industry but for the economy at large. 

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If the manufacturing operations of all three automakers are entirely shut down in an extended strike, it would cost the U.S. economy roughly $5.6 billion in just 10 days, according to an analysis from Anderson Economic Group.

Any automaker whose production lines are entirely halted will suffer earnings losses of roughly $400 million to $500 million per week, Deutsch Bank has estimated.

The UAW is planning a rally in Detroit Friday at 4:00 p.m. ET featuring Fain, Sen. Bernie Sanders, I-Vt., and other lawmakers.

FOX Business’ Sarah Rumpf-Whitten, Megan Henney and Reuters contributed to this report.

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