Transportation electrification is a critical step towards energy transition and low-carbon society, with wide-ranging social and economic impacts. This study examines the significant role of the 2023 United Auto Workers strike in the context of transportation electrification, with a focus on its implications for the automotive industry and labor market dynamics. Through an analysis of the strike’s immediate effects on production and long-term implications for labor practices and competitive strategies, this study explores how labor actions can influence the pace and direction of the transportation decarbonization efforts. We argue that the strike may accelerate automation and the adoption of non-unionized labor, potentially reshaping the future labor market and manufacturing landscape. To support a just and equitable transition, we call for incorporating the safeguarding of labor social benefits into the innovation of public policies and investment portfolios that incentivize the electric vehicle markets.