Aug 25, 2023 - Economy
UAW strike fund provides backstop to workers in event of automaker strike
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A UAW strike would cost the organization's strike fund $100 per workday per affected worker.
By the numbers: The fund totals more than $825 million, meaning the union could strike all three automakers for 12 weeks before its backstop is exhausted, according to Evercore ISI analysts.
- "While the union obviously doesn't want to deplete this fund ... the UAW has ample resources to continue paying its membership's 'strike pay' for many weeks, only running out of funding in the event of a prolonged" labor stoppage, Evercore ISI analyst Chris McNally wrote.
How it works: The strike fund is available to workers beginning after the eighth day of a strike to active members in good standing with the union.
Yes, but: Strike pay equals only about 25% to 60% of UAW workers' typical compensation.
- "So workers do indeed suffer with any strike," McNally wrote.
Go deeper: Summer of strikes heats up
