GM earnings rise, sparking another plant to go on strike
UAW union members expanded their strike at General Motors in response to the company’s stronger-than-expected third quarter profit.
Within hours of the earnings report, the UAW announced that 5,000 members would strike at one of GM’s most profitable plants. Located in Arlington, Texas, the plant produces full-size SUVs such as the Chevrolet Tahoe and Suburban, the GMC Yukon, and the Cadillac Escalade.
For its strike, the union cited better than expected financial results from General Motors.
As we have been saying for months: record profits equal record contracts.” said UAW President Shawn Fain. “GM workers, as well as the entire working class, deserve a fair share.”
Although the company’s results were good, they weren’t a record. In the first nine months of this year, GM reported an adjusted income of $8.9 billion, up nearly 11% from the same period last year. The strike costs will likely reduce income from last year’s record levels for the full year.
As a result of the strike, the company lost $200 million in its first two weeks of the quarter. However, those costs have risen since then, reaching $600 million during the first three weeks of this month, or about $200 million a week. The UAW has expanded the strike at GM before, so Tuesday’s expansion isn’t the first time it’s done so.
According to GM, the union and company were making progress at the bargaining table, so an expansion of the strike was unnecessary.
According to the company’s statement, “We are disappointed by the escalation of this unnecessary and irresponsible strike.”
Since then, the targeted strike has grown to involve work stoppages at 12700 assembly plants across the four automakers.