CNN Business: 4,000 more UAW workers on strike after rejecting deal with Mack Trucks

Article published: October 9, 2023

IB Economics Syllabus: Microeconomics (labor market, wage costs, power of labor unions)

The United Auto Workers (UAW) union has declared a strike at Mack Trucks after nearly 4,000 members voted against a recently proposed agreement. The rejected deal included a 10% pay raise, additional pay benefits, and no hike in insurance premiums. Stephen Roy, the president of Mack Trucks, expressed disappointment and highlighted the company’s commitment to the collective bargaining process.

IB Economics (IA) Commentary Suggestions:

In your IA, you can explore the dynamics of labor unions like the UAW and their influence on wage costs and the labor market. To help illustrate the impact of labor unions on wages and employment, diagrams such as the Labor Market Equilibrium (demand and supply diagram representing the market of workers) from the IB Economics syllabus can be used, and you can also consider the broader implications of such strikes on the automotive industry. The key concept to focus on is economic well-being, choice, scarcity or even interdependence.

Source of image: Photo: Bill Pugliano/Getty Images

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