Oct. 30 marked one year since a stunning victory by striking members of United Auto Workers at the Big Three auto companies. To get workers back after 46 days of a gradually expanding strike, GM, Ford, and Stellantis nearly doubled the starting wage from $18 to $30 an hour, and increased the top wage by 25%, from $32 to over $42.
At the time, anti-union naysayers predicted doom for the companies, saying the raises would cause a price spike and loss of market share.
A year later, the data is in. New car prices actually dropped 1.06% on average, according to the U.S. Bureau of Labor Statistics. The bureau keeps track of average new car prices as part of its calculation of the consumer price index.
And as for market share, market leader GM was actually up 0.5% to 17.5% of the market as of September, while Ford dropped 0.2% to 12.1%, and Stellantis dropped 1.3% to 7.9%. Price is only one of many factors affecting market share. Tesla, not exactly a budget make, gained 0.9% market share in the same time frame.
How can the Big Three do right by workers and not raise prices? The answer is simple. Automaker labor costs make up only about 7% of the overall cost of building a car. Raw materials and parts like computer chips are much bigger factors.
