Rising labor costs for U.S. automakers are sowing the seeds for deeper investment in automation after settlements last year to end a month of strikes at car plants across the country saw automakers agree to large wage increases for American auto workers.
The Big Three Detroit motor manufacturers agreed to pay United Auto Workers union members wage increases of around 25% in November, which will push up labor costs significantly for Ford, General Motors, and Stellantis, which was formed by the merger of Fiat Chrysler and France’s Peugeot.
This is obviously great news for the unionized workers — but if automakers increasingly look toward automation to mitigate these rising labor costs, it could prove to be a longer-term negative for UAW workers.
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