uaw strike

How The United Auto Workers Strike Could Have a Significant Impact on Business Owners

Since the end of September, over 17,000 members of the United Auto Workers (UAW) have been on strike against Detroit’s Big Three auto companies. Their demands include the following:

  • A 46% pay increase
  • A four-day work week with overtime pay beyond 32 hours
  • Union representation at new electric battery plants
  • The end of employment tiers that created two classes of employees—one older that is better paid and receives more benefits and one younger that was hired after 2007

The U.S. economy is already getting bruised by the strike and things will only get worse until a settlement is reached. If your industry is not directly affected, you may think the strike won’t have a major effect on your business—but you could be wrong. Experts note the walkout could affect business owners in a number of ways:

  • Loss of revenue—particularly for those businesses located near strike sites (since striking workers won’t be able to maintain their normal spending)
  • Potential layoffs—particularly for suppliers that work with the Big Three
  • Loss of tax revenue—which means fewer programs will receive the funds they need
  • Rising car prices—the result of a possible vehicle shortage
  • Lower productivity—since strikes can disrupt business operations outside the affected industry

Two other possible developments are making it harder to get vehicles repaired and reducing the demand for parts needed to make new vehicles.

If Your Business Is Affected

A strike like this is yet another unforeseen challenge for business owners, something that’s certainly difficult to plan for. If your business is directly affected by any of the ways noted above, you may find yourself seeking some short-term financing to get you through this rough time.

You may have more options than you think, especially if your credit isn’t the best or you haven’t been in business for too long. Business loans such as equipment financing, merchant cash advances or working capital loans may be just what you need to weather the storm. There’s no reason to let a short-term situation negatively affect your long-term plans.

If you’re feeling the impact of the strike and looking to explore your lending options, contact Clear Skies Capital today at 800-230-9822 to discuss how our professional lenders can work with you to provide the funding you need. We’ve helped hundreds of business owners get through short-term challenges—and we’d love to help you too.