State Chamber Says UAW Strike Could Be "Devastating" To Tennessee

  • Friday, September 15, 2023

Tennessee is one of the top states in the nation for automotive manufacturing strength and the UAW labor union strike "has the potential to be devastating to both the Tennessee and United States economy and manufacturing sectors," the Tennessee Chamber of Commerce said Friday.

Officials said, "Following the failure to reach an agreement on labor contract negotiations by the Sept. 14 deadline, the United Auto Workers (UAW) labor union has initiated a strike aimed at General Motors, Ford, and Stellantis (known as the Detroit Three).

"Although automakers put forth unprecedented economic packages, with wage increases up to 20 percent, UAW held firm in demanding larger wage increases, a four-day work week, and an expanded pension program, among other things.

"As the initial wave of the strike unfolds, over 12,700 autoworkers in Michigan, Ohio, and Missouri will be directly impacted. Should the strike continue, up to 145,000 workers will be directly impacted.

"However, this historic strike will have rippling effects across large segments of the entire U.S. economy, impacting approximately 1.5 million American families and leading to potential layoffs and bankruptcies for suppliers and small businesses."

The Tennessee Chamber of Commerce and the Tennessee Manufacturing Association said, “We urge a swift resolution to the UAW labor union strike that was initiated last night and has the serious potential to spread here to Tennessee.

"Tennessee has been noted as the number one state for both automotive manufacturing strength and recent EV investments. Across our great state, Tennessee’s automotive manufacturing sector generates over $40 billion in annual economic activity—from OEMs to small businesses and suppliers that produce goods and services. On average, jobs in this industry are some of the best paying jobs our state has to offer, producing significant income and economic opportunity for middle-class and working families. Automotive manufacturing is a cornerstone of not only Tennessee’s economy, but the entire U.S. economy.

"Especially now – in the light of global supply chain disruptions and the federal targets set for EVs, it is crucial that we maintain the momentum of American manufacturing and ensure automotive manufacturing companies can remain competitive. Automotive manufacturers have been working to avoid this strike offering generous compensation and significant benefit increases that have so far been rejected. We call on the Biden Administration to use their executive authority to intervene immediately before the strike spreads.

"Executive action must be taken to mitigate the negative impact this strike will have on the Tennessee and larger U.S. economy.”

Bradley Jackson, President and CEO, Tennessee Chamber of Commerce & Industry

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