![]() McNeil also noted that the rising MSRPs of Big Three vehicles have not been driven by labor. That's a very important data point to take into account when the automakers claim that our demands will be catastrophic," UAW spokesperson Jim McNeil said. "The Center for Automotive Research in Ann Arbor estimates that labor is just 5.1% of the cost of the average vehicle. When reached for comment, a UAW spokesperson noted the industry source's take misrepresented a few key points. (AP Photo/Carlos Osorio) (ASSOCIATED PRESS) Less at stake because of its international blue print? The Chrysler Technology Center (Stellantis), in Auburn Hills, Mich. The impact being that automakers would return to the "bankruptcy era" and more than double the labor costs for GM, Ford, and Stellantis versus non-union automakers like Tesla (TSLA). "That adds $35 to $40 per hour to active labor cost - an increase of roughly 60%," the source said. The UAW's wish list would amount to $25 billion-$30 billion per automaker over the life of the contract. "Everyone understands these demands aren’t going to happen - it would be suicidal for the companies to agree to this," one industry source told Yahoo Finance. ![]() According to Bloomberg, the cost of the UAW demands could amount to $80 billion over the course of the contract, which typically lasts three to four years.įain's demands caught the automakers' leadership off guard. (AP Photo/Paul Sancya.) (ASSOCIATED PRESS)īut the tough-guy talk may be a plus: Fain, in essence, may be preparing the rank and file for a long, rough fight - a fight brought on by the costs facing the Big Three given these demands. Nice Guy: United Auto Workers president Shawn Fain outside the General Motors Factory Zero plant in Hamtramck, Mich., last month.
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