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Economic researcher predicts fallout of UAW strike

by Stella Morgan

Title: United Auto Workers Strike Poses Risks for Industry and Consumers


As the United Auto Workers (UAW) union members vote overwhelmingly in favor of authorizing strikes against major Detroit car companies, concerns about the impact of the potential strike continue to grow. While the strikers worry about the effects on their families, there are broader implications for the U.S. auto industry and consumers as well.

Uncertainties and Financial Impact

If an agreement between the UAW and the car companies is not reached soon, many workers may have to tighten their belts. Beyond individual workers, the entire future of the U.S. auto industry is at risk, according to Patrick Anderson, the CEO of East Lansing-based economic research firm, Anderson Economic Group. Anderson highlights the potential dilemma where consumers could turn to non-union-made vehicles produced by competitors of the Big Three automakers.

Market Share and Consumer Choices

Anderson points out the numerous alternatives available to American consumers in terms of vehicles built in non-union plants across the country, such as Honda in Georgia, Alabama, and California, as well as Tesla in Texas and California. This poses a significant challenge for General Motors, Ford, and Stellantis, as they could lose market share to competitors, resulting in a decrease in sales from these major automakers.

Need for Stability

The demands made by the UAW president, including the recreation of the jobs bank and a return to a defined benefit pension system, may further exacerbate the risks faced by the Big Three automakers. The jobs bank, which provides laid-off workers with a check for “community service,” and the defined benefit pension system were contributing factors to the bankruptcy of GM and Chrysler in the years leading up to 2009.

Potential Economic Impact

The strike’s prolonged duration not only puts autoworkers at risk but also impacts the economy as a whole. With the strike leading to a slowdown in production and economic activity, average consumers may experience the ripple effects in the form of higher prices for goods and services. The impact on the economy could be significant if the strike continues for an extended period.


The ongoing vote by UAW members to authorize strikes against Detroit car companies highlights the overarching risks to the U.S. auto industry and consumers. As demands and negotiations continue, the potential consequences of a strike loom large. The possibility of lost market share, increased competition from non-union plants, and the financial burden on companies and workers could have far-reaching effects on the future of the American auto industry.

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