Markus Andrews

The number of Americans who say they are stretched thin has remained stubbornly high.
Federal Reserve Chair Jerome Powell said the central bank would like to see more progress in its fight against inflation, leaving open the possibility of one more interest rate increase this year.

After a prolonged period of high inflation and higher interest rates, Americans are just getting by.
As of August, 60% of adults said they are living paycheck to paycheck, according to a new LendingClub report, unchanged from last year.

Recent data is painting a mixed picture of where the economy stands. Inflation has shown some signs of cooling but the consumer price index, which measures costs across a broad array of goods and services, is still up 3.7% from a year ago, according to the U.S. Bureau of Labor Statistics’ August reading.
Those higher prices have weighed on worker paychecks. Real average hourly earnings declined 0.5% for the month, the U.S. Department of Labor said in a separate release.
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Since wage growth hasn’t been able to keep up, households are having a harder time making ends meet.
“The data underscores the pervasive nature of financial challenges affecting a majority of consumers,” said Alia Dudum, LendingClub’s money expert. “The problem is that there is more month at the end of the money.”

The Federal Reserve left interest rates unchanged at the end of its most recent policy meeting but Fed Chair Jerome Powell said the central bank would like to see more progress in its fight against inflation, leaving open the possibility of another interest rate increase this year.
Central bank officials have already raised rates 11 times, pushing the Fed’s key interest rate to a target range of 5.25% to 5.5%, the highest level in more than 22 years. 

Four out of five consumers’ spending habits have been affected by inflation, according to TD Bank’s annual consumer spending index.
Soaring housing, food and child-care costs are putting pressure on household budgets on top of paying higher interest rates on credit card debt and auto loan payments, said Sophia Bera Daigle, CEO and founder of Gen Y Planning, an Austin, Texas-based financial planning firm.
Monthly expenses are “starting to hurt,” said Bera Daigle, who is also a member of the CNBC’s Advisor Council.
Lower-income workers have been the hardest hit by higher prices, particularly for food and other necessities, since those expenses account for a bigger share of the budget, studies show.
Now, 76% of consumers earning less than $50,000 a year and 62% of those earning between $50,000 and $100,000 were living paycheck to paycheck in July, little changed from a year ago, LendingClub found. Of those earning $100,000 or more, only 45% reported living paycheck to paycheck. 

70% of Americans are stressed about finances More

A Trump-appointed federal judge in Texas upheld a Biden administration rule about using ESG funds in 401(k) plans and other retirement plans.
The judge, Matthew Kacsmaryk, wrote that the rule’s substance is similar to a Trump-era regulation that it replaced.
The Biden administration’s pro-ESG messaging is likely the more significant win, lawyers said.

President Joe Biden walks with Labor Secretary Marty Walsh before an event in the Rose Garden of the White House on Sept. 15, 2022.
Anna Moneymaker | Getty Images News | Getty Images

‘Tonal shift’ is the biggest win

ESG investing — also known as impact or sustainable investing — allocates money according to environmental, social and governance principles. Climate-focused mutual funds, for example, might seek to invest in green energy technology or avoid fossil fuel companies.
The Biden administration rule — which took effect Jan. 30 — was one facet of a White House effort to address climate change. President Biden also signed the Inflation Reduction Act into law, the biggest piece of climate legislation in U.S. history.
Biden’s ESG rule replaced a regulation issued by the Trump administration. The latter was expected to have a chilling effect on ESG uptake in 401(k) plans at a time when adoption was already relatively scarce.
Just 4.2% of 401(k) plans offered an ESG fund to workers in 2021, according to the Plan Sponsor Council of America, a trade group. They hold about a hundredth of 1% of 401(k) assets, PSCA said.

Republican state attorneys general sued the U.S. Department of Labor, which promulgated the rule, claiming it violated the Employee Retirement Income Security Act of 1974 and the Administrative Procedure Act.
A Trump-appointed federal judge in the Northern District of Texas dismissed that argument.
Of course, the decision may be appealed. For now, the ruling preserves the Biden administration’s positive vibes about ESG investing, experts said.
“In an area where perception is reality, I do think the tonal shift is a significant thing,” said Andrew Oringer, a retirement law expert and partner at The Wagner Law Group.
“If you’re a fiduciary who wants to take into account ESG, and you feel the Department of Labor isn’t against you, maybe you’re more willing to do it,” Oringer added. “Whereas if you’re a fiduciary who wants to take it into account and you feel the DOL is gunning for you, maybe you’re not as willing to proceed.”
(Fiduciary is a legal term that refers to the individuals choosing investment funds for a 401(k)-type plan.)

The laws are ‘substantially the same’

From a legal standpoint, the Biden and Trump rules are, at their core, “substantially the same,” said Mark Iwry, a non-resident senior fellow at the Brookings Institution and former deputy assistant secretary for retirement and health policy at the U.S. Department of the Treasury during the Obama administration.
In other words, reverting to the Trump-era regulation wouldn’t have had much of a legal impact.
The Texas judge, Matthew Kacsmaryk, agreed.
“The 2022 Rule changes little in substance from the 2020 Rule and other rulemakings,” he wrote in his Sept. 21 opinion, referring to the Biden and Trump-era ESG regulations, respectively.
That’s because ERISA, a federal retirement law, disallows employers from picking investments for ideological reasons. Instead, they must be chosen according to a financial or economic analysis of what’s best for the plan and its investors.

The Biden administration was concerned that the spin around the Trump rule might have chilled plans’ willingness to consider ESG factors.

nonresident senior fellow at the Brookings Institution

So, employers can consider ESG factors if they “reasonably determine” those factors materially affect the financial risk and return analysis of an investment, Iwry said.
And in the case of a “tie” — for example, a dead heat between a climate fund and one or more traditional funds — employers can weigh in favor of non-economic factors, such as ESG and employee preferences for such funds, experts said.
These have been longstanding views of the Labor Department, and consistent with both the Biden and Trump rules, experts said.
“There’s only so much you can diverge from what [ERISA] requires,” Oringer said.
So why promulgate a new rule in the first place? While there are subtle differences, the answer largely gets back to tone, experts said.
“The Biden administration was concerned that the spin around the Trump rule might have chilled plans’ willingness to consider ESG factors in evaluating plan investments,” Iwry said. “The new rule effectively declares, ‘There’s no chill in the air.'”

Roadblocks remain

Mischa Keijser | Image Source | Getty Images

ESG funds have gained popularity more broadly among retail investors. U.S. ESG funds held $286 billion in 2022, about triple the total from 2018, according to Morningstar.
But some roadblocks remain for 401(k) uptake, experts said.
For one, 401(k) investors have filed a flurry of class-action lawsuits in recent years against employers over their investment options. Employers may be nervous about adding ESG funds in such an environment, experts said.
Most immediately, the Trump-era ESG rule “spooked” the community and “I think that spooking still persists,” Oringer said.
They may also be cautious about proceeding with ESG because of the possibility of another tonal shift from the Labor Department in future Democratic and Republican administrations, Oringer said.
“We certainly don’t have — and may never have — a settling in of that pendulum,” he said. More

The U.S. federal government could shut down at around the same time student loan payments restart.
A shutdown could lead to 90% of staff at the U.S. Department of Education being furloughed, according to higher education expert Mark Kantrowitz.
Here’s what borrowers should know.

A sign declares the National Archive is closed due to a partial federal government shutdown in Washington, December 22, 2018.
Joshua Roberts | Reuters

Two big events could soon coincide: The U.S. federal government is poised to shut down just as student loan bills restart after a pause of more than three years.
With lawmakers thus far unable to strike a deal to keep the government funded beyond this week, the White House is warning federal agencies to prepare for a shutdown. If Congress is unable to pass funding legislation, the closure of agencies could occur starting Oct. 1, just when the Biden administration planned to switch on student loan payments for around 40 million Americans.

“But don’t celebrate just yet,” higher education expert Mark Kantrowitz advised borrowers who may be hoping the drama buys them more time before they have to pay their bill. “Student loan payments are still due.”
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The length of a possible shutdown will determine the impacts on borrowers, White House Press Secretary Karine Jean-Pierre said during a press briefing on Monday.
“If Republicans in Congress go down this road of shutting down the government, we anticipate that key activities at Federal Student Aid will continue for a couple of weeks,” Jean-Pierre said. “However, if it is a prolonged shutdown [it] could substantially disrupt the return to repayment effort.”
Here’s what borrowers need to know.

90% of Education Department staff could be furloughed

A government shutdown could lead to 90% of staff at the U.S. Department of Education being furloughed, Kantrowitz said. The term “furloughed” derives from the Dutch word, “verlof,” and means “leave of absence.” It is mostly associated with government shutdowns.
The department employed close to 4,100 employees, including part-time and full-time workers, as of September 2021.
But even with the lights mostly off at the Education Department, the student lending machine should keep chugging along.

“There should be minimal disruption of student loans, since the process is mostly managed by student loan servicers and other contractors,” Kantrowitz said.
In other words, your student loan servicer can handle the collecting and processing of your payment each month without help from the Education Department.
Because most federal student loans are paid for with mandatary funding, new borrowers also shouldn’t face any disruptions if there’s a government shutdown. It’s discretionary funding that Congress decides on each year and would be impacted by a shutdown.

Some borrowers could see delays

There are some borrowers who could be impacted by the stalemate in Washington. That’s because certain processes require loan servicers to consult the Education Department.
For example, the department is required to confirm eligibility for borrowers pursuing Public Service Loan Forgiveness aid. That federal program allows workers for the government or certain nonprofits to get their student debt canceled after 10 years.
During a shutdown, borrowers could run into delays trying to apply for their final loan forgiveness.

Meanwhile, borrowers hoping to make changes to their loans, such as consolidating them, may also hit a wall.
Those hoping to get information on their loans or the restart of repayment may be stuck waiting for answers if staff at the Federal Student Aid Information Center need to consult the Education Department, Kantrowitz added.
Still, borrowers should be able to get most of the information they need from their loan servicer and on studentaid.gov.
Borrowers should also be able to change their repayment plan and certify their current income under income-driven repayment plans without any bumps. More

Lawmakers face a looming deadline to pass a spending bill to prevent a federal government shutdown.
Here’s how Social Security and Medicare services may be affected if a shutdown does occur.

A general view of the U.S. Capitol, where Congress will return Tuesday to deal with a series of spending bills before funding runs out and triggers a partial U.S. government shutdown, in Washington, D.C. Sept. 25, 2023.
Jonathan Ernst | Reuters

Washington lawmakers are scrambling to pass a spending bill before an Oct. 1 deadline.
If they cannot agree, there will be a federal government shutdown.

For retirees who rely on Social Security and Medicare, the good news is those programs will mostly be unaffected because they are considered mandatory spending.
“Checks will continue to go out,” Bill Sweeney, senior vice president of government affairs at AARP, said of Social Security benefits. “The people whose job it is to get those checks out will be continuing to come to work.”
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Seniors who rely on Medicare can also expect services to continue.
“Most seniors should be fine, both on the Medicare side and on the Social Security side,” said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.

However, the longer a shutdown lasts, the more likely it is to affect these program beneficiaries, according to Freese.
There have been 14 federal government shutdowns since 1980, according to the Bipartisan Policy Center. When that happens, federal departments, agencies and programs generally come to a stop, and employees who are not exempted from the shutdown are furloughed.
If a shutdown happens this time around, it may be brief, according to Bill Hoagland, senior vice president at the Bipartisan Policy Center.

“We may have some minor shutdown because time is just running out,” Hoagland said.
While a government suspension of a few days likely will not have an impact, Freese said, beneficiaries may start feeling the effects if it lasts around 30 days.
“Our assumption is that the most impacted part of Social Security is going to be the disability program,” Freese said.
While services related to the payment of benefits will be prioritized, other processes related to disability claims, such as hearings, appeals, quality controls and reviews, may be put on the back burner, she said.
“The backlogs in the disability program are likely to get bigger, depending on how long the shutdown lasts,” Freese said.

What Social Security activities may be affected

The Social Security Office of Budget, Finance and Management has outlined plans for a partial shutdown of agency operations if a lapse occurs.
It would take the Social Security Administration half a day to complete shutdown activities. While almost 61,900 employees would be expected to be on board before a plan is implemented, about 8,500 agency employees would be expected to be furloughed once a shutdown is in effect.

Activities to be discontinued in a government shutdown

Benefit verifications

Earnings record corrections and updates

Payee accountings

Prisoner activities — suspension

Requests from third parties for queries

Freedom of information Act (FOIA) requests

IT enhancement activities, public relations and trainings

Replacement Medicare cards

Overpayments processing

Source: Social Security Office of Budget, Finance and Management

Activities that will continue during a government shutdown

Applications for benefits (including appointments, limited data exchanges and record corrections, including claims-related earnings, for mandatory benefits)

Requests for appeals (reconsiderations, hearings, Appeals Council)

Post-entitlement actions (changes of address, Supplemental Security income living arrangement changes, noncitizen verification/changes, direct deposit, death inputs, processing of remittances for overpayments and administrative fees)

Non-receipts and critical payments

Payee changes

Direct contact reinstatement of benefits

Issuance of original and replacement Social Security cards

Prisoner activities — beneficiary-initiated reinstatement of benefits only

Program integrity workloads (redeterminations and continuing disability reviews) due to the extended availability of appropriations

Critical information technology support for daily processing activities

IT multifactor authentication acceleration work

Source: Social Security Office of Budget, Finance and Management More

In four decades, graduate salaries have decreased more than 10% after adjusting for inflation, a recent report found.
In addition to soaring food and housing costs, millennials and Gen Z face other financial challenges their parents did not as young adults.
Some budgeting basics can give those just starting out a leg up, experts say.

When Jacynthe Riviere graduated from college with an accounting degree, “there were plenty of jobs,” she said — and “the big firms paid well.”
The year was 1984. Riviere, now 61 and living in Puerto Rico, made roughly $18,000 in her first position as a staff auditor — the equivalent of more than $53,000 today — but her income shortly increased to $24,000, which is a 33% jump.

That year, graduates earned $23,278, on average, or $68,342 in today’s dollars, roughly $7,254 more than 2023 graduates, according to a recent report by Self Financial.
In four decades, graduate salaries have decreased more than 10% after adjusting for inflation, the report found.

Online tools can help

“Your parents might have been making more, but they didn’t have the tools that this generation has,” said John Hope Bryant, chair and CEO of Operation HOPE, a nonprofit dedicated to financial empowerment for underserved communities.

Anyone with a smartphone can now access a wealth of free or low-cost apps for budgeting, saving and investing.
“If you are in this generation, you have tools literally in the palm of your hand that can help you.”
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“For those just starting out, their advantage here is technology,” said Douglas Boneparth, a certified financial planner and president and founder of Bone Fide Wealth, a wealth management firm based in New York.
Of course, “you have to do a little bit of due diligence first,” he added. Vet budgeting and investing apps before you hand over your information by reading reviews and checking their security measures. It also helps to consider how the app’s features help you better learn about and manage your money.

Go back to basics

Regardless of how much money you make at the outset, “in these early years of building good financial habits, it comes down to good behavior,” said Boneparth, who is also a member of CNBC’s Advisor Council.
Start with two basic fundamentals, Boneparth advised: “Know what comes in and what goes out.” Then, “build in a margin of safety with a cash reserve.”
“If you can get these two things under your belt, you are setting yourself up for success in the rest of your financial life.”
Experts say sticking to a budget and having an emergency fund are key to staying afloat during the inevitable economic ups and downs. Most financial pros recommend having at least six months’ worth of expenses set aside, or more if you are the sole breadwinner in your family or in business for yourself.
“There is inherently going to be volatility and how you are going to handle that makes the difference,” Boneparth said.
Subscribe to CNBC on YouTube. More

While car shoppers used to be able to find 3-year-old cars for $23,000 in 2019, pandemic-era manufacturing lulls triggered price increases and the average age of used cars, iSeeCars.com found.
The average transaction price for used cars is still 46% higher than the second quarter of 2018, according to Edmunds.
“It’s really not a great time for consumers to be buying cars, whether new or used,” said Paul Waatti, an industry analyst at market research firm AutoPacific.

Customers browse in a used car lot on Feb. 15, 2023 in Glendale, California.
Mario Tama | Getty Images News | Getty Images

As recently as 2019, used car shoppers could find a 3-year-old vehicle for about $23,000. That’s less likely today — in terms of both age and price.
Pandemic-era manufacturing issues have since increased the average age of used cars sold to 6.1 years, up from 4.8 years, according to car-shopping site iSeeCars.com, which analyzed more than 21 million used cars sold in 2019 and 2023.

The average price for all used cars sold increased 33% between 2019 and this year, rising to $27,133 from $20,398, according to the site.
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“Plant shutdowns and limited new car production during the pandemic is still playing havoc with the used car market,” Karl Brauer, iSeeCars executive analyst, said in a statement.
To that point, 58% of sales from used vehicles came from 3-year-old or newer used cars in the second quarter of 2019. That figure dropped to 49% in the second quarter of 2023, according to Edmunds data.
The average transaction price for used vehicles in the second quarter of 2023 was $29,472, down 4.6% from last year’s record peak of $30,905, Edmunds found. While prices cooled slightly, used cars overall are still expensive; sticker prices are 46% higher than the second quarter of 2018.

“It’s really not a great time for consumers to be buying cars, whether new or used,” said Paul Waatti, an industry analyst at market research firm AutoPacific.

How the pandemic affected the used car market

Production of new cars dropped precipitously thanks to plant shutdowns in 2020, 2021 and 2022, raising demand in the used car market at large, iSeeCars found. Car rental agency woes added to the problem.
“The used car market has different supply chains, one being rental agencies,” said Ivan Drury, director of insights at Edmunds.

It’s really not a great time for consumers to be buying cars, whether new or used.

Paul Waatti
industry analyst at AutoPacific

In a typical year, rental agencies buy about 2 million new cars and then sell some existing inventory. But when people stopped traveling in 2020 amid Covid-era lockdowns, agencies thinned their fleets in the third and fourth quarter of 2020 without buying new vehicles, Drury said.
“There was no need for them to buy their normal level of vehicles,” Waatti said. “They sold off some of the older models and held onto a core amount of vehicles to get them through the pandemic.”
Rental agencies are now selling off vehicles that are about 4 to 5 years old, compared with the typical 2-year-old used vehicles that still have warranties left on them.

UAW strikes will have ‘some ramifications’

UAW members and workers at the Mopar Parts Center Line, a Stellantis Parts Distribution Center in Center Line, Michigan, picket outside the facility on Sept. 22, 2023.
Matthew Hatcher | Afp | Getty Images

Current strikes by United Auto Workers members at three major car manufacturers could also impact the used car market in the long run, as new inventory at dealerships dries up and supply chain issues cause dealers to run out of parts required for regular maintenance, Waatti said.
When people can’t buy new cars, they always look into used, especially at times like this year, when it is increasingly difficult to buy a new car, Drury said.
“People are already looking at used vehicles to save money; this just makes the problem more difficult,” he said.

Newer used cars that are coming into dealerships and need tune-ups will be waiting for those new parts for a while, Waatti said.
“There definitely will be some ramifications,” he said.

What to consider when buying a used car

Here are three considerations car shoppers should keep in mind when buying an older used car:

Carefully vet a vehicle that is 6 years old or older: Find the vehicle history report; you’ll see detailed information that will let you know the maintenance and accident history, Drury said. If the prior owner took the vehicle to a repair shop or mechanic that does not report this type of data, you want them to have a “binder of information or receipts” that shows you the vehicle was cared for beyond just the norm, he added.
Look into warranties: Typical warranties last for three years, Drury said. Even if the previous owner says the car still has warranty, double-check with the dealer. “If the vehicle is out of warranty, you can purchase an aftermarket warranty,” he added. However, they vary in cost and services by area because some aren’t valid in all states, he said. “Even if you’re looking at something that’s technically outside of the automaker back warranty, you can still go around that if you want that assurance, and purchase an aftermarket warranty,” he said.
Get preapproval from a bank or credit union to finance the purchase:  As interest rates are also very high, try to secure some form of pre-approval beforehand from your own bank or credit union instead of using dealer financing, which is often more expensive, Waatti said. “Having the pre-approval could save you hundreds [or] thousands in the long run in your loan.” More

As your wealth increases, it may be tempting to buy a second home or a boat.
But financial advisors warn those purchases can put a big dent in your retirement funds.

Courtneyk | E+ | Getty Images

Americans are at risk of falling short of what they may need to live on financially in retirement.
One potential reason is lifestyle creep, or the tendency to upgrade your lifestyle as you earn more.

An upgrade people are often tempted to make – the purchase of a second home – may be particularly risky for long-term planning, financial advisors say.
“Those bigger purchases, if not done really deliberately and diligently, can almost end up being almost like a grenade in your otherwise well-planned retirement,” said Patrick McGinn, president of Retirement Resources Investment Corp. in Peabody, Massachusetts. The firm is ranked at No. 29 on the 2023 CNBC FA 100 list of top financial advisors in the U.S.
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The purchase of a second home takes away from money that could be invested elsewhere in an asset that’s more liquid than an extra property, according to Stephen Cohn, a certified financial planner and co-president of Sage Financial Group in West Conshohocken, Pennsylvania. The firm is No. 22 on this year’s CNBC FA 100 list.
Importantly, the return on those liquid investments may far exceed what someone may earn on a second home.

“There are people who think they can afford it, but don’t realize it’s going to impact their ability to reach their other financial goals, one of which is retirement,” Cohn said.

However, many people tend to convince themselves the house will appreciate, which they then can monetize or liquidate when they need it for retirement, he said.
“Typically, what happens is most people don’t want to give that second home up after they’ve lived in it for a certain amount of time,” which adds to their cost of living, Cohn said.

Some retirement ‘wants’ just don’t hold water

The purchase of a boat is another example of a big-ticket transaction that can significantly reduce a retirement nest egg, according to McGinn.
A $50,000 boat may cost $15,000 to $25,000 per year to keep up between insurance, storage and maintenance, he said.
“In a sense, you’re pre-spending your retirement,” McGinn said, by putting your current consumption ahead of your future retirement needs.
To help clients evaluate the impact of a boat purchase, McGinn said he typically runs an analysis of the financial impact five to seven years out.

When evaluating a second home purchase, which typically costs more, McGinn said he does a deep dive analysis on the cash flow needs associated with the property and the investment growth that may be sacrificed as a result.
Likewise, Cohn said he also runs a financial analysis for prospective second home buyers that includes the impact it will have on them being able to retire at a certain age and to maintain a certain lifestyle.
If the purchase may derail clients’ financial goals, Cohn said he urges them to consider alternatives, particularly renting.
“Renting is by far, in our opinion, a much more efficient way of enjoying a destination,” Cohn said. More

At a campaign event earlier this month in Fort Dodge, Iowa, Sen. Tim Scott — vying for the GOP presidential primary nomination — said former president Ronald Reagan had it right when he fired thousands of striking air traffic controllers in 1981.
But the National Labor Relations Act of 1935 grants private sector workers the right to strike, and they can’t be fired for doing so.

Sen. Tim Scott, R-S.C., speaks to a crowd during a presidential campaign kickoff event at Charleston Southern University on May 22, 2023.
The Washington Post | The Washington Post | Getty Images

At a campaign event earlier this month in Fort Dodge, Iowa, Sen. Tim Scott of South Carolina said former president Ronald Reagan had it right when he fired thousands of striking air traffic controllers in 1981.
“Ronald Reagan gave us a great example when federal employees decided they were going to strike,” the Republican presidential contender said. “He said, ‘You strike, you’re fired.’ Simple concept to me.”

The comment was met by immediate blowback from the labor movement, as the number of strikes and other labor actions has exploded this year. Some 362,000 workers have gone on strike so far in 2023, compared with 36,600 over the same period two years ago, according to the Cornell ILR Labor Action Tracker.
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The United Auto Workers union filed a labor complaint against Scott for his remarks, accusing his campaign of interfering with workers’ rights to engage in union activity under federal law. Thousands of auto workers have gone on strike at plants across the country of late, demanding higher wages and better benefits.
Kenneth Dau-Schmidt, a law professor at Indiana University Bloomington, said that Reagan’s controversial action firing air traffic controllers continues to be condemned and revered, depending on whom you’re talking to.
“There never had a been a president so hostile to union workers, and it could have gone bad,” Dau-Schmidt said. “If one plane went down, Reagan would have looked like a goat.

“But there were no major crashes, and conservatives now just say, ‘You have to be tough,” Dau-Schmidt added.
A spokesperson for the Scott campaign defended the senator’s comments.
“Sen. Scott has repeatedly made clear, both at that event and others, that Joe Biden shouldn’t leave taxpayers on the hook for any labor deal,” they said.
Here’s what the law says about firing workers on strike.

Workers have the right to strike

The National Labor Relations Act of 1935 granted private sector workers the right to strike, said Sharon Block, a professor at Harvard Law School and the executive director of the Center for Labor and a Just Economy.
“Under the NLRA, strikers cannot be fired for striking.” Block said.

Members of the former Professional Air Traffic Controllers Organization, or PATCO, on strike in 1981.
Wally Mcnamee | Corbis Historical | Getty Images

The idea being, Dau-Schmidt added, that “if capital is going to be organized, then labor should be organized, too.”
However, when Reagan fired the air traffic controllers, he was acting within the law because the NLRA’s right to strike does not apply to federal employees, Dau-Schmidt said.
Although Scott specifically cited a case of firing federal workers at the campaign event, his comments were widely taken as hostile toward all union activity.

Job security still at risk for workers on strike

Even though private sector workers’ on strike are protected from termination, they can in certain cases be temporarily or permanently replaced if their employer hires someone else to do their job, Dau-Schmidt said.
“Permanent replacement looks a lot like firing from the employees’ perspective,” he said.
Still, workers have certain protections.
If a striker’s replacement leaves the job for whatever reason, the worker who was on strike must be offered the position before anyone else is hired, Block said.

If workers were on strike due to unfair labor practices as opposed to economic conditions, they may also have a right to reinstatement.
Beyond the law, it would be foolish from a business perspective for the automakers, or any big company, to hastily part ways with their labor force, Dau-Schmidt said.
“If they started firing these workers, they’d find all of UAW workers on strike,” he said. “It could take months or years to replace everyone, and they’d lose a lot of money.”
— Additional reporting by CNBC’s Spencer Kimball. More