MICHIGAN (WXMI) — Two local professors say the tentative agreements between the United Auto Workers and Ford, Stellantis, and General Motors, mark a possible turning point for workers everywhere.
“People are paying attention,” said Jeff Rothstein, a Grand Valley State University professor of sociology who studies labor.
According to Rothstein, the new contracts’ promises show the union successfully put pressure on the automakers, but maintained support from its members and minimized harm on the state and national economy.
READ MORE: GM reaches tentative agreement with UAW, potentially ending 6-week strike
“What the UAW has demonstrated is we can still have middle class, blue collar jobs with strong unions,” said Rothstein. “It’s hard to imagine that that won't impact other workers and what they set their sights on.”
Rothstein believes the tentative agreement brings relief for those in the union, and hope to people who work for one of the Big Three’s non-unionized competitors.
Bruce Ferrin agrees.
The Western Michigan University professor of marketing and supply management researches transportation and speculates the effects could even trick down to employees in different industries.
According to the United States Bureau of Labor Statistics, union membership fell to the lowest rate ever last year, but in 2020, it reached a then four-year high.
“It would not surprise me over the next fill in the timeline - year, three years, five years - that we might not see somewhat of a resurgence in organized labor, because the labor unions are getting some important agreements that will significantly benefit their membership,” said Ferrin.
Neither Ferrin nor Rothstein think the new contract will significantly increase the cost of a car.
They explain the automakers would not agree to an unaffordable deal. Labor accounts for upwards of five percent of its total price.
“As far as I'm concerned, these, these kinds of agreements are a positive thing for the economy,” said Ferrin. “From the union side, [it’s] the adjustment in wage, the improvement in benefits, [and] the increase in disposable income… From the employer and management side, the effects of these agreements will factor into the investment side of the of the equation.”
Both add the UAW’s novel strike approach encourages other unions to create a notable plan in the future.
“This example will encourage other unions and other workers to think creatively about what they can do that's different, in particular, using the strike as, as a weapon, which a lot of workers and a lot of unions have really shied away from,” said Rothstein.
