Originally Posted at HR Daily Advisor
For six weeks in the fall of 2023, the United Auto Workers (UAW) went on strike. The Big Three automakers—General Motors, Ford, and Stellantis, the parent company of Jeep and Chrysler—were the targets. The auto industry makes up about three percent of the nation’s gross domestic product (GDP), and UAW workers produce nearly half of the light vehicles made in the United States. Within days, the strike halted production at plants in Michigan, Ohio, and Missouri. The Federal Reserve estimated that the strike subtracted 0.1 percentage points from annualized GDP growth in the third quarter and 0.5 percentage points in the fourth quarter— equaling $10.4 billion in economic losses.
By contrast, in 1959, United Steelworkers of America went on a 116-day strike that idled the steel industry in the United States. More than 85 percent of U.S. steel production was shut down. And U.S. industries began importing steel from foreign sources. In 2014, the West Coast Longshoreman Strike lasted for nine months. Cargo ships were stalled. The slowdown impacted almost every industry in the U.S. It is estimated that retailers suffered $7 billion in costs and losses. The meat industry lost approximately $85 million every week the strike lasted, and the U.S. economy posted a 15% drop in exports.
Strikes can have significant impacts that reverberate up and down supply chains, crippling imports and exports, as well as costing individual consumers more when prices are impacted. Is there a way to protect and respect all parties in a strike scenario? Is there a way to listen to the workers’ requests, keep production alive, and save the average consumer another price increase? The answer is yes. And the solution is to use the assistance a staffing agency provides.
Staffing Agencies to The Rescue
Using temporary workers to keep a minimum workflow can help lessen a strike’s adverse economic effects. In addition, they provide a buffer, so each negotiating party has more time to present, be heard, and reach a compromise.
Temporary workers have no stake in either side of strikes and are indeed “temporary.” Staffing agencies are not in the business of job replacement; they provide a short-term option. When the strike ends, the temporary workers leave, and union workers resume their jobs. Staffing agencies also provide a valuable resource for:
- Contingency Planning—Companies need to ensure continuity of operations, especially in sectors where interruptions can lead to significant revenue loss or public safety concerns. Staffing agencies analyze current processes, document a company’s physical attributes, and identify primary goals to develop a customized plan.
- Security Services—During a strike, protecting everyone involved, including employees on the picket line, is paramount. Staffing agencies use a hands-off approach to conflict resolution and non-confrontational methods to help create a safe and secure environment and prevent animosity and conflict.
- Skilled and Unskilled Workers—It takes expertise to keep a company running. Staffing agencies offer skilled and unskilled temporary workers to help maintain production levels and avoid delays or disruptions.
Conclusion
Staffing agencies play on neither team; they are a team in their own right. They are not disruptive forces during strikes; they can play a vital role in helping to ensure economic stability and business continuity. Prolonged and extensive strikes impact more than union members and workers—they can alter economic conditions, affecting household budgets.
A staffing agency’s intervention is not about negating the efforts or undermining the rights of striking workers; instead, it’s about helping to mitigate broader economic repercussions and ensuring overall safety. Staffing agencies provide a balanced ecosystem during tumultuous times by offering temporary workers, and the dividends paid are replicated in the Gross Domestic Product (GDP) if the strikes are prolonged and extensive.
The UAW fall strike 2023 underscores the need for qualified temporary worker placement to buffer productivity and pressure and allow time to create positive outcomes that stimulate worker satisfaction, ultimately trickling down into enhanced product or service quality.
Trevor Fandale is the President of Huffmaster. He joined the company in 2016 as Vice President of Finance, bringing a strong financial analysis and strategic planning background. Trevor has provided executive assistance to develop short and long-term company goals, plans, and development strategies. Trevor’s expertise and vision have been invaluable to the company’s success.