The UAW has expanded their strike against General Motors in a move seemingly designed to overshadow the company’s third quarter earnings.
Starting with the strike, roughly 5,000 employees at Arlington Assembly walked off the line this morning. The plant builds full-size SUVs including the Cadillac Escalade, Chevrolet Tahoe / Suburban, and GMC Yukon.
These models are extremely profitable for GM, so the lack of production will hit their bottom line pretty hard once existing inventory dries up. Furthermore, even when production eventually resumes, the company will likely have a hard time catching up to demand.
More: UAW Strike Expands To Hit Popular Ford And GM SUVs, Ford CEO Calls Move ‘Grossly Irresponsible’
The union said the move came after GM’s latest offer failed to “reward UAW members for the profits they’ve generated.” They added “GM’s offer lags behind Ford, with the company proposing a two-tier wage progression, the weakest 401(k) contribution offer on the table, a deficient COLA, and other shortcomings.”
The timing wasn’t a coincidence as the move came shortly after GM reported third-quarter revenues of $44.1 (£36.2 / €41.6) billion and a net income of $3.1 (£2.5 / €2.9) billion. The union thinks this is proof the company can afford to meet their demands and UAW President Shawn Fain said, “Another record quarter, another record year. As we’ve said for months: record profits equal record contracts.”
GM slammed the move and called it an “escalation” of an “unnecessary and irresponsible strike.” The automaker added the strike is “harming our team members, who are sacrificing their livelihoods, and having negative ripple effects on our dealers, suppliers, and the communities that rely on us.”
The company said they gave the union a “comprehensive offer” last week that “increased the already substantial and historic offers we have made by approximately 25% in total value.” GM CEO Mary Barra alluded to this in her letter to shareholders, which called the offer the “most significant that GM has ever proposed to the UAW.” The letter went on to say a majority of their workforce would be making $40.39 (£33.20 / €38.13) per hour, or roughly $84,000 (£69,050 / €79,298) a year, by the end of this agreement’s term.”
That’s a lot of money and the automaker said “It is time for us to finish this process, get our team members back to work, and get on with the business of making GM the company that will win and provide great jobs in the U.S. for our people for decades to come.”
