September 26th 2023.
The Big Three automakers have taken a hit to their reputations following the United Auto Workers union strike, according to a survey conducted by the business intelligence firm Caliber. Ford, Stellantis, and General Motors have all seen substantial decreases in several reputational metrics since the UAW strike began on September 15. People are now less likely to consider the carmakers’ products, recommend them to others, or even work for them.
"87 percent of respondents told us they were aware of the strike," said Caliber CEO Shahar Silbershatz to The Intercept. "It's clear the strike is not just causing commercial repercussions, but also reputational repercussions."
These findings have been further supported by a recent Ipsos poll. This poll found that 58 percent of Americans support striking autoworkers, with support from 72 percent of Democrats and 63 percent of independents, as well as 48 percent of Republicans. This poll also found that 60 percent of Americans back the Writers Guild of America strike, which appears to be coming to a close after more than 150 days on the picket line.
It is evident from these results that the American public is siding with the UAW’s 150,000 members in their fight against the American auto manufacturers - the largest autoworker strike in U.S. history. The union’s demands include higher salaries, the elimination of a tiered pay scale, and a restoration of benefits lost in the wake of the 2008 financial crash.
The Big Three auto manufacturers found themselves in a difficult situation in the run-up to the strike. The Intercept reported last week that this led to supply chain chaos, with engines loaded and shipped cross-country and paint divisions closed at plants that the UAW never planned to strike. The conflict with the union is now starting to affect consumers as well.
The Caliber survey, conducted the week of September 18, a few days into the strike, revealed that Stellantis suffered an 8-point decrease in its “Trust & Like” score, compared to the previous week. Ford and GM had 4-point and 3-point decreases respectively. Furthermore, Stellantis and Ford saw 14-point and 9-point decreases in their consideration scores, while GM had a 3-percent drop. Stellantis’s recommendation score declined by 19 points, while Ford and GM saw 9- and 7-point drops. Ford and GM each saw 9-point drops in their employment scores, while Stellantis saw a decline of 13 points.
GM spokesperson Kevin M. Kelly commented to The Intercept, “We have said repeatedly that nobody wins in a strike, and that effects go well beyond our employees on the plant floor and negatively impact our customers, suppliers and the communities where we do business. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.” Ford and Stellantis did not respond to requests for comment.
The public's support for the UAW has been extraordinary. President Joe Biden visited the picket line in Wayne County, Michigan on Tuesday - a first in history. Even members of the Republican Party, who have long worked to weaken workers rights and malign unions, have expressed support for the UAW. Former President Donald Trump also announced he would travel to Michigan to speak to UAW members on Wednesday, a commitment that was rejected by UAW President Shawn Fain.
Negotiations between the UAW and Ford are slowly progressing, according to the union's leadership. However, a deal with the other carmakers seems out of reach. Fain stated last Thursday that the union would “shut down parts distribution until those two companies come to their senses and come to the table with a serious offer.”
It is clear that the UAW strike has had a significant effect on the Big Three automakers’ reputations. Whether or not the companies will be able to recover from this reputational hit remains to be seen.
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