However, due to shifting consumer preferences, a transition to electric vehicles (EVs), and global market uncertainties, job preservation becomes increasingly complex. Generally, EVs require fewer people on the assembly line because they have far fewer parts than gasoline-powered vehicles.
Job Security: The UAW likely will seek to enhance job security, aiming to protect workers from layoffs and plant closures. Both labor and management face strategic issues which will significantly raise the stakes in the collective bargaining process. These negotiations come at a time of significant challenges and opportunities facing the automotive industry.
Historically, the UAW focuses its bargaining on one of the Big Three companies and then uses that deal to create a pattern for the other two automakers. In 2019, UAW workers at General Motors went on strike for 40 days before a new contract was ratified, costing the automaker billions of dollars in lost revenue. The current collective bargaining agreement expires on September 14, and a strike could have disastrous consequences for not only the Big Three but supplies and vendors down the supply chain. The United Auto Workers (UAW) Union and the Big Three automotive companies - General Motors (GM), Ford, and Stellantis - stand on the brink of a pivotal moment as they prepare to engage in labor contract negotiations.
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