The United Auto Workers union has extended its strike to include a General Motors full-size SUV plant in Texas shortly after GM reported favorable earnings for the third quarter.
UAW strike hits key GM SUV plant
The strike now involves approximately 5,000 employees at GM’s Arlington Assembly plant, which is responsible for manufacturing vehicles like the Cadillac Escalade, GMC Yukon, and Chevy Tahoe and Chevy Suburban.
The strike occurred shortly after GM reported earnings that exceeded Wall Street’s expectations. UAW President Shawn Fain emphasized that record profits should result in record contracts. It should be noted that GM’s reported profits for the quarter had actually declined.
GM revealed that the UAW strike had already resulted in an $800 million loss in production, including $200 million during the third quarter, before the strike at the Arlington plant. GM expressed its disappointment in the strike, citing its negative impact on team members, dealers, suppliers, and the communities dependent on GM.
As a result of various strikes, over 45,000 UAW members at Detroit automakers, constituting approximately 31% of the union members governed by expired contracts, are currently on strike. Additionally, about 5% of workers, roughly 7,000 individuals, have been laid off due to the ripple effects of these strikes.
This strike at the Arlington plant follows a recent strike at a key Stellantis plant in Sterling Heights, Michigan, and a walkout at a Kentucky truck plant that generates approximately $25 billion in annual revenue for Ford Motor. These unannounced strikes at profitable facilities represent what UAW President Fain has termed a “new phase” in bargaining with Detroit automakers.
Earlier, the UAW had threatened GM’s Arlington plant with a potential walkout. UAW President Fain had indicated such plans unless GM included workers at its joint-venture battery cell plants in the company’s master agreement. However, it seems that progress in these discussions has since stalled, as Fain mentioned that talks regarding the battery cell plants were no longer progressing.
GM CEO Mary Barra, during the company’s third-quarter investor call, stated that discussions to incorporate battery plant workers within the scope of the national agreement remained open. However, the current focus is on having workers at the joint venture, known as Ultium, negotiate their own agreement with the union.
The bottom line
The ongoing strike is growing in impact on automakers, suppliers and future consumers who will see limited availability in the near future. Hopefully this strike ends soon.
