As I pointed out last week, The High-Octane Truth about the strike is that it doesn’t really matter what the “percentage” of the wage increase negotiated by the UAW is. And it doesn’t really matter what COLA allowances are determined, or what any of the other various demands are that Fain and his cronies are making.
Why? Because Detroit, as we know it or knew it, is dead. The automakers based here are operating on a crushing cost deficit to competitors like Tesla, as well as the Korean, Chinese and Japanese manufacturers. And that deficit will not shrink with this next labor contract. Instead, it will grow larger. The collective Detroit-based manufacturers are going to be saddled with per-hour labor costs that will make them even less competitive, at a crucial time in the industry when the alleged “Grand Transition” to EVs is supposed to be picking up steam and sucking every bit of cash that the auto companies can muster.
