• 05-OCT-2011

New UAW Contracts Will Allow Automakers to Create Thousands of Jobs

Auto Industry Jobs Broll

Earlier this week, the United Auto Workers (UAW) reached its first agreement with an automaker since the recession of 2009 that stopped the car making industry in its tracks.

But what exactly does this mean for the American economy? More opportunities. A job at an auto manufacturer, GM, Ford, Chrysler, Honda, Toyota to name a few, has a multiplier of 10. And what that means is for every job at one of these companies, there are nine other jobs in the economy, either in suppliers or in spin-off jobs like restaurants, grocery stores, and so on.

The UAW has recently ratified a new contract with General Motors and agreed to profit-sharing and more flexible work rules. Since 2009, GM has invested over 5 billion dollars in new US operations and added 13,000 jobs, and has seen its sales and market share steadily increase over that time. The new contract will allow them to hire and retain an additional 6,400 workers and invest another 2.5 billion in its U.S. facilities.