UAW's Six-Week Strike Proves To Be A Mere Hiccup For Jeep's Hometown Toledo

The recent six-week-long United Auto Workers (UAW) strike at the Stellantis (NYSE:STLA) assembly plant in Toledo, Ohio, home to its subsidiary Jeep since World War II, had a minor impact on the local economy.

According to a report by The Wall Street Journal, while the strike caused reduced spending by workers, Toledo’s economy remained largely unaffected. Paul Hong, a professor at the University of Toledo, noted that the city’s economy has diversified over the years and is now less dependent on automaking.

The strike which began on Sep.15, saw several thousand Toledo workers participating. A new contract was tentatively agreed upon with Stellantis, Ford Motor (NYSE:F) and General Motors (NYSE:GM) over the weekend, ending the strike.

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Scot Yarnell, co-owner of Earnest Brew Works, said his business was hardly impacted during the strike. He anticipates an uplift in mood with the strike’s end, as the holiday season, their busiest time of year, approaches.

Despite the strike, Toledo’s economy continues to evolve. The city’s employment in manufacturing is down from 18% in 1990 to 15%, while jobs in hospitality, construction, education and health services have grown, according to the Labor Department.

The strike did, however, result in assembly-line shutdowns and layoffs at parts makers. Striking workers temporarily lost their regular paychecks and relied on the UAW’s strike fund, which provided each member with a $500-per-week payment.

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Image by Saeid Anvar in Pexels