President Joe Biden joined United Auto Workers in Michigan on the 12th day of their strike against major carmakers.
The United Auto Workers (UAW) strike is in its sixth week and there are reports of a tentative resolution. While the strike itself has damaged the global economy in the short-term, should the UAW secure their negotiation demands, the impact on the U.S. economy and workforce will be even worse.
It’s easy to understand why. The UAW’s first two demands, a 40% wage increase and a shorter work week would make U.S auto manufacturers less productive and less competitive compared to foreign players, weakening a beloved and core U.S. industry.
However, it's the UAW's third demand that is most troubling: the elimination of the two-tiered wage system, which would result in everyone in a given role receiving the same compensation, regardless of their experience or time in their position. This demand is fundamentally un-American and would have severe unintended consequences.
UAW members and supporters on a picket line outside the Stellantis NV Toledo Assembly Complex in Toldeo, Ohio, on Sept. 22, 2023. (Emily Elconin/Bloomberg via / Getty Images)
Recently, UPS eliminated their two-tiered wage system. If the UAW secures this concession, the auto industry would be the next domino to fall, putting American industry on the perilous path of self-imposed decline.
UNITED AUTO WORKERS STRIKE: COST TO US ECONOMY SETS NEW RECORD
Negotiators need look no further than Communist Mao Zedong’s China in the 1950s and 1960s to see the disastrous economic effects of this policy. Unsurprisingly, Marxists are advising the UAW leadership and pushing for a similar wage system.
Mao's vision of socialist equality, with uniform wages
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