UAW strike has already cost the US economy $1.6B
Commonwealth Financial Network Chief Investment Officer Brad McMillan discusses the impact of the UAW strike on the economy, the Federal Reserve's anticipated rate decision and his outlook on the markets.
The United Auto Workers strike against the Big Three Detroit automakers is already hitting the U.S. economy.
The week-long work stoppage has cost about $1.6 billion so far, according to a new analysis from the Anderson Economic Group, a Michigan-based think tank that specializes in the economic impact of labor strikes.
That figure includes company losses of $511 million, lost direct wages of $107 million and consumer and dealer losses of $470 million. It does not take into consideration strike pay, unemployment benefits, unemployment taxes or income taxes.
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Supporters and workers cheer as United Auto Workers members go on strike at the Ford Michigan Assembly Plant in Wayne, Michigan, on Friday. (Bill Pugliano/Getty Images / Getty Images)
The longer the walkout lasts, the greater the risk it poses to the economy.
The strike was limited in scope for the first week as UAW sought to preserve its $825 million strike fund, which would support a walkout for about 11 weeks by the 146,000 union members. But the union significantly expanded the walkout on Friday to include all parts distribution centers at General Motors and Stellantis, the maker of Jeep and Chrysler.
The escalation excludes Ford, because UAW President Shawn Fain said the company has shown signs they are «serious about reaching a deal.»
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