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The union demands higher hourly wages, job security, better healthcare benefits and profit-sharing plan. The union wants GM to limit the use of temporary workers and offer those part-time workers a path toward permanent employment. Similar to other industries, automation, robotics and technology are quickly replacing people. With these strong headwinds, the UAW is pushing for more than $20 an hour for entry-level workers, along with top benefits and pension plans.
Democratic presidential candidates have quickly jumped on Twitter to voice their complete support for the union workers. If this strike drags on, it may hurt the economy, which is President Donald Trump’s key claim to success. Specifically, he has pushed for manufacturing to return from abroad to the U.S. His Democratic opponents can point to the work stoppage as a failure of his presidency and the need for a Democrat in the White House.
It has been demonstrated in other industries that once worker wages rise to a certain level, companies will invest in technology, which limit the need of workers in the future. Advanced robotics will make it relatively easy to replace scores of factory workers—if their demands become too onerous.
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