UAW Union Expands Strike, Shutting Down General Motors’ Profitable Plant in Texas
October 24, 2023 – In another significant expansion of the strike, the United Auto Workers (UAW) union has struck a General Motors (GM) assembly plant in Texas that builds the automaker’s profitable full-size sport utility vehicles. The strike has now shut down three of the most profitable auto factories in the world.
The UAW’s decision to strike GM’s Arlington assembly plant, which is home to GM’s profitable Chevy Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade large SUVs, has escalated the strike and dealt a blow to the automaker’s operations. Workers at Ford’s Kentucky Truck heavy-duty pickup factory and Chrysler-owner Stellantis’ Ram pickup plant in Michigan are already on picket lines.
“We are disappointed by the escalation of this unnecessary and irresponsible strike,” GM said in a statement on Tuesday. The targeted strikes by the union have taken a toll on the revenue of the Detroit Three automakers for over 40 days and have caused other businesses, including airlines and auto parts makers, to feel the impact.
GM reported a stronger-than-expected third-quarter profit earlier on Tuesday, but the company withdrew its full-year financial forecast due to the uncertainty of the strike. UAW President Shawn Fain stated, “It’s time GM workers, and the whole working class, get their fair share,” indicating that negotiations could get tougher in the upcoming phase of talks.
While it is unclear how far apart the union and the automakers are in their negotiations, Fain revealed that the Detroit Three had converged on a 23% wage hike offer and made progress on other issues. However, Fain believes that there is more to be won and is pushing for additional concessions from the automakers.
The strike has not only impacted the automakers’ profits but has also raised concerns about the financial distress faced by small and medium-sized suppliers. Industry experts estimate that the economic losses for the auto industry have crossed $9.3 billion after five weeks of strikes.
As negotiations continue, the UAW and automakers are also discussing future wages and unionization policies for electric vehicle battery plants. These talks are complicated by the fact that the ventures are separate companies not covered under the master UAW contracts.
Despite the ongoing strike, shares in GM, Ford, and Stellantis remained relatively stable on Tuesday, indicating that Wall Street believes the talks may be entering the endgame. “The union is playing its cards with the goal of a settlement sooner rather than later,” said University of California, Berkeley labor professor Harley Shaiken.
As the strike prolongs, the UAW strike fund is expected to reach $750 million by the end of this week, according to estimates by Wells Fargo. The UAW and the automakers are expected to continue negotiations in the coming days to reach a resolution and end the strike.
Written by David Shepardson and Joe White
Edited by Sayantani Ghosh