Univ. of Northern Iowa professor talks UAW strike

Published: Sep. 20, 2023 at 6:13 PM CDT
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CEDAR FALLS, Iowa (KCRG) - As the strike involving thousands of autoworkers in the US continues this week, students at UNI watch closely and learn about how this will impact the state of Iowa.

Associate Professor of Supply Chain Management, Andy Anderson says it’s a teaching opportunity.

“What would be in the impact of a strike not only on consumers, which it will probably have a significant effect on, but also the suppliers as well,” he told TV9.

To start, he looks at the supply chain, saying some of these auto makers rely on a lot of Iowa-led companies that produce machined vehicle parts.

“A lot of these places are getting parts from other places and they’re probably not going to be ordering much from their suppliers as we go up or down the supply chains,” said Anderson.

As for consumer impact, they could see a spike in cost regardless of how much supply any given dealership has.

“Car dealerships could still engage in predatory pricing because of the perceived shortage,” said Anderson “Whether it’s real or not, there could be a perceived shortage and that could drive up prices at the dealerships.”

The UAW has been negotiating with Ford, General Motors, and Stellantis. The union is making several demands including a 40% pay raise over 4 years. So far, offers from the auto makers have not come close to that mark.