Auto workers strike

UAW workers are voting now to authorize a strike and the current tally is around 97%. This is more of a procedural step to give union leadership the power to strike and was a sure thing.

The problem is that workers are asking for a lot in negotiations, and that's not a surprise given inflation and given headlines about UPS drivers making $170K. Detroit is in better shape than a decade ago and the workers sense some leverage.

According to CNBC:

The union’s demands include a 46% wage increase, restoration of traditional pensions, cost-of-living increases, reducing the workweek to 32 hours from 40 and increasing retiree benefits.

That's a big ask. Now, every negotiation starts out with an unrealistic ask but all the stars are aligned for a tough battle. Currently, everyone is looking at the 5.9% Q3 Atlanta Fed GDPNow reading but if there's an auto strike in Sept, you can lop off a big part of that, with more coming off in Q4 if it continues.

The union has some firepower too, with $825m in a strike fund that would pay workers $500/week, up from $275 last year and enough to last for 11 weeks.