UAW Threatens Strike At Targeted Auto Plants If Labor Deals Not Reached: Report

The United Auto Workers union has reportedly threatened strikes at targeted U.S. auto factories if a labor deal with the Detroit Three automakers does not go through by late Thursday.

UAW President Shawn Fain, in a video call with leaders of union locals on Tuesday, conveyed the strike plans and suggested more methods, including picketing more plants if a new contract agreement is not reached, the WSJ reported.

Fain also expressed doubts about reaching an agreement with any of the three automakers.

The report noted that UAW officials will come up with the names of the factories that will go on strike late Thursday, within hours when the union’s current contracts with the car companies are set to expire.

General Motors Company GM, Ford Motor Company F and Stellantis N.V. STLA are only days away from a possible strike by UAW, with 146,000 autoworkers.

According to the Anderson Group, an economic consultancy, a 10-day strike could reduce the U.S. gross domestic product by $5.6 billion, potentially pushing the Michigan economy into a recession.

However, RSM US LLP economist Joseph Brusuelas said the strike would not be sufficient to cause a recession but could suffer a modest 0.2% drag this quarter should the action last a month.

The UAW's demands include a defined-benefit pension, retiree health care, pay raises equal to 46% over four years, a 32-hour work week, reinstatement of cost-of-living allowances, and the end of tiered pay. 

Price Action: GM shares are trading higher by 0.63% at $33.68 in premarket on the last check Wednesday.

Photo Via UAW