The UAW Strike Already Has 'Ripple Effects' On The Auto Industry

Across plants and across borders, the UAW is making waves

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Good morning! It’s Thursday, September 21, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

1st Gear: GM Lays Off 2,000 Workers, Blames Strike

Ah, corporations. Always so eager to blame the workers for the side effects of a strike. We’ve seen it plenty this year, with the entirety of Hollywood pivoting to the picket line, and now the Big Three are getting in on it as well — putting out statements blaming the UAW for layoffs, plant closures, and more. GM has a fresh one, from the Detroit Free Press:

General Motors said it idled its Fairfax Assembly Plant in Kansas City, Kansas, around 1 p.m. Wednesday and that most of the 2,000 workers across two shifts there will be laid off indefinitely.

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“It is unfortunate that the UAW leadership’s decision to call a strike at Wentzville Assembly has already had a negative ripple effect, with GM’s Fairfax Assembly plant in Kansas being idled today and most of its represented team members leaving the plant as there is no work available,” read a GM statement given to the news media Wednesday afternoon. “This is due to a shortage of critical stampings supplied by Wentzville’s stamping operations to Fairfax.”

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As a reminder, strikes are not the fault of the workers. They’re the fault of the corporations who won’t pay out for a fair contract. Hope this helps!

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2nd Gear: VinFast Is Giving Europe A Shot

VinFast has been selling cars in the United States for a minute now, and it’s gone swimmingly. The cars are so extremely, incredibly up to par for the rest of the automotive market, and don’t at all feel like garbage. Clearly, the next step is to take things to Europe. From Reuters:

Vietnamese electric vehicle (EV) maker VinFast plans to ship its first EVs to Europe this year after receiving regulatory approval, its CEO told Reuters on Thursday, as the European Union considers imposing tariffs on its Chinese rivals.

Under the plan, about 3,000 of its VF8 crossovers would be delivered to France, Germany and the Netherlands in the fourth quarter of this year from VinFast’s factory in northern Vietnam, a person familiar with the plan told Reuters. The source declined to be named because these details were not yet public.

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This can only end well, I’m sure. Why take the time to refine your cars, make them worthy of purchase, when you could just send them to more places in hopes that someone, anyone, lays down their cash to pick one up?

3rd Gear: Unifor’s Union Contract Vote Looks Precarious

Yesterday, the whole automotive world reported that Ford narrowly avoided dealing with two separate strikes in two separate countries. Now, according to some sources, things aren’t looking quite so sure. From Automotive News:

Unifor plans to have members vote on its tentative agreement with Ford Motor Co. of Canada “before the end of the week,” though precise timing for ratification meetings is still being finalized, a union spokesperson told Automotive News Canada Wednesday.

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But given the current labor environment and the targeted UAW strikes ongoing in the United States, the outcome of the ratification vote is no guarantee, said Larry Savage, chair of the labor studies department at Brock University in St. Catharines, Ont.

“Even if the [Unifor] bargaining team delivered the best contract in a generation, it may still be voted down if it didn’t meet the high expectations of workers given the UAW’s militancy south of the border.”

The aggressive tactics and public demands of UAW President Shawn Fain over the past several months has “raised expectations for autoworkers on both sides of the border,” Savage added.

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It sounds like the workers at Unifor have secured themselves a good deal — one union leadership supports. But if it’s not enough, if the workers think they can get more out of Ford, it sounds like they may still be willing to give striking a shot.

4th Gear: America Loves Strikes

Despite all the debate and uncertainty on cable news and all the PR blitzes from corporations, it seems most Americans still like a good strike. At least, that’s according to a new poll from Reuters and Ipsos, who claim U.S. citizens are big fans of the UAW, WGA, and SAG-AFTRA. From Reuters:

Americans broadly back striking workers in the auto industry and Hollywood, according to a two-day Reuters/Ipsos poll completed on Wednesday that found significant support among both Democrats and Republicans.

The poll found that 58% of Americans support the first-ever simultaneous strike by the United Auto Workers union against Ford Motor (F.N), General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI) to win better pay and benefits, while 32% oppose the action and 10% were unsure.

Similarly, 60% of Americans support the dual strikes by screenwriters and actors to win better pay and protections in the entertainment industry, while 27% oppose it and 13% were unsure.

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Remember, folks: You’re not a temporarily embarrassed billionaire. Supporting your fellow working folks can help rise the whole wage tide, which is far more likely to raise your personal boat than the trickle-down from any CEO.

Reverse: He’ll See Everything! He’ll See The Big Board!

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