What the UAW strike could mean for labor conditions
Auto workers march into the fifth day of their historic labor strike, threatening to expand the strike if progress isn't made in the ongoing talks with the Big Three automakers, Ford (F), General Motors (GM), and Stellantis (STLA). Cornell University School of Industrial and Labor Relations Senior Economic Advisor Erica Groshen joins Yahoo Finance Live to discuss technological advancements present in the automotive industry and the greater impact the United Auto Workers' strike could have on overall labor conditions.
"This actually could be good if it ushers in an economic period like we had in the 1960s when unionism was more widespread and there was more activism," Groshen explains. "But this is a period with very high productivity growth, improved living standards for all workers, less inequality than we see now — so it could be turning the corner to get back some of the salient features that we've had before."
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Video Transcript
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JARED BLIKRE: The strike against the big three automakers enters its fifth day with a deal still elusive. The UAW warning over more action if, quote, "serious progress is not made." Union reps say they received no new offers from GM, Ford, or Stellantis since it laid out its proposals on September 14. Stellantis says it has resumed negotiations, however citing constructive discussions.
On Friday, 9% of the union's nearly 150,000 members, they downed their tools. And joining us now with her take on what sets these strikes apart is Erica Groshen, Cornell University School of Industrial and Labor Relations senior economic advisor. Erica, thank you for joining us today. What do you make of the latest here?
ERICA GROSHEN: Well, in some ways it's not terribly surprising. We certainly have a very strong labor market, a very strong economy and strike activity usually rises when the economy and the labor market is strong. So we have the immediate conditions.
And then we are in a time of technological change, say, for entertainment professionals, the growth of generative AI. For autoworkers, we're talking about the move to electric vehicles and robotics. So that's a play. And the administration is more friendly to organized labor, that helps. So we have a lot of things that suggest that we're going to have labor market activity and they're probably behind a lot of what we're seeing.
DIANE KING HALL: So Erica, we saw a summer of strikes. And basically, this is heading over into the fall now with a lot of different kind of sectors of the economy. Now UAW threatening that their strike could expand on Friday if, you know, there's not more "serious progress," quote, made. What is the expectation for the impact to the economy from your view, especially if these strikes continue to extend now?
ERICA GROSHEN: Well-- so I mean, as an economist, I always say on the one hand, on the other hand, right? So here we go. I mean, this actually could be good if it ushers in an economic period like we had during the 1960s when unionism was more widespread and there was more activism. But this was a period with very high productivity growth, improved living standards for all workers, less inequality than we see now. So it could be turning a corner to get back to some of the salient features that we've had before.
On the other hand, of course, it could be bad if we see labor strife without creative cooperative solutions to workplace issues, which, of course, include pay and benefits, but also training, working conditions, worker voice, like that. And then there's always a possibility that's neutral, this is just a flash in the pan and we go back to the trends that we were on for a long time. So I think the jury is still out, but there is potential for this to actually be a force for creativity and cooperative solutions going forward.
