The analysis is part of a U-of-M Research Seminar in Quantitative Economics quarterly report. It says a relatively short strike of about six weeks probably won’t derail Michigan’s economic recovery from the pandemic. It says a short strike could slow jobs growth. But U-of-M economist Gabriel Ehrlich says it could also spur serious bargaining.
“Obviously that puts pain on both sides, the automakers and the auto workers, and so that does create an incentive to get to a deal.”
Ehrlich says the longer a strike lasts, the bigger the consequences. But he says the more lasting impact would likely come from what’s in a contract in terms of wages and its effects on the willingness of manufacturers to invest in Michigan.