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Here's how the UAW strike expansion could impact Western New York car dealerships

So far Western New York plants have not been directly involved, but an observer says the next strike phase might involve GM Powertrain.

TONAWANDA, N.Y. — The United Auto Workers strike against the Big 3 automakers is now shifting into slightly higher gear with an expansion of strike locations.

So far Western New York car production plants are not directly affected. But some analysts feel that will likely change if the strike goes on, and now local car dealerships may be impacted. 

The UAW's targeted strike strategy is moving beyond picket lines at three Midwest assembly plants over the past week to now include 38 GM and Stellantis parts distribution centers. That includes one for Stellantis brands Chrsyler and Jeep in downstate Tappan, N.Y. 

Local UAW leaders say there is no involvement so far for Tonawanda's GM engine plant, Lockport's GM components, and Hamburg's Ford stamping plant. But they emphasize they are ready with practice pickets if called to "stand up" by fiery national president Shawn Fain.

Fain in a social media announcement Friday stated that "we can and will go all out if our national leadership decides the companies aren't willing to move."

One local observer feels GM could soon feel the heat more-so, especially at Tonawanda Powertrain with its 750-member workforce.

Art Wheaton, who is the director labor studies at Cornell's School of Industrial and Labor Relations, told 2 On Your Side, "As the strike escalates, it's likely to hit engine plants and transmission plants. It's probably the next phase."

Whatever the next direction for the strike, which so far has avoided profitable pickup assembly plants, Wheaton does think the new parts distribution strike element hits local GM and Stellantis dealers with potential customer impact.

"Anyone who has ever gone to get their car fixed knows that the dealership doesn't sell parts at a loss," Wheaton said. "They make a pretty good penny on the parts that are there, and they don't keep any of them in stock. They always get them from the parts distribution centers so that it's going to have an immediate impact on the customer, an immediate impact on the profitability of those dealerships."

Wheaton said this may be a union pressure tactic on GM corporate brass.

"It's going to put all of that pressure back on General Motors from their biggest customer, which is the dealerships," Wheaton said.

One additional point from Wheaton on Friday: "If you notice, they did not escalate at all at Ford, because Ford is bargaining in good faith. Ford has increased their offers."

In fact, Ford worked out a deal for its over 5,000 Canadian UAW workers to avoid a strike in that country. That is where some Hamburg stamping parts are shipped to assembly plants.

Wheaton said some feel Ford's contract bargaining progress may eventually be a template for GM and Stellantis down the road. But he adds the UAW  is far apart in negotiations.  

So far there has been no comment from local car dealerships we reached out to on Friday. 

 

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