Another truck assembly plant was hit by United Auto Workers strike on Tuesday morning as nearly 5,000 workers walked out of General Motors plant.
The Arlington Assembly plant produces the Chevy Tahoe, Chevy Suburban, GMC Yukon and Cadillac Escalade.
“We are disappointed by the escalation of this unnecessary and irresponsible strike. It 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,” General Motors said in a statement.
The walkout comes on the heels of General Motors third-quarter earnings report of $3.5 billion. The company said that the strike cost it $200 million in its first two weeks of the quarter.
The Michigan-based Anderson Economic Group estimates the auto industry has lost $9.9 billion since the strike began on Sept. 15. That estimate does not include the new GM and Stellantis strike targets.
In the last week, UAW President Shawn Fain has pushed the Big Three on what they’re describing as their financial limits as the strike enters its sixth week.
“Another record quarter, another record year. As we’ve said for months: record profits equal record contracts.” Fain said. “It’s time GM workers, and the whole working class, get their fair share.”
The $8.9 billion in adjusted income over the course of the first nine months is up nearly 11% year-over-year, but is not a record for a quarter, according to CNN. Last year, GM did report a record profit.
Related: Strikes spread across Michigan as emboldened unions bargain harder
Two weeks ago, Fain warned automakers that he would no longer be announcing strike targets during his regular Friday updates on Facebook Live.
“We are at the point in this process where we are looking for one thing only – a deal, a tentative agreement … They know what needs to happen and they know how to get it done,” Fain said on Oct. 13.
The GM strike targets comes one day after 6,800 Michigan workers walked out of Stellantis’ Sterling Heights Assembly plant, which produces RAM 1500 trucks.
Tuesday’s GM strike target is the third surprise announcement in the last two weeks. The first was when 8,700 UAW members walked off the job at Ford’s Kentucky Truck Plant in Louisville.
The surprise Ford target spurred more momentum between Stellantis and General Motors, Fain said.
“General Motors and Stellantis got the message loud and clear. They hurried to catch up with Ford. But GM in particular is worrying,” Fain said on Oct. 20.
Two major sticking points were GM’s wage progression and not agreeing to the right to strike over plant closures. GM is proposing a two-tier progression with three years for all current employees and four years for future hires, according to the UAW.
General Motors latest offer to the UAW was submitted on Oct. 20 and included a 23% wage increase, representing 25% compounded over the life of the contract, and a 26% wage increase for temporary workers putting them at $21/ hour.
“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,” the company said in a statement.
General Motors estimates about 2,350 additional employees have had work impacted by the strike. Additionally 3,000 suppliers have also been laid off across 500 facilities.
Multiple Michigan plants are among the 19 feeder plants into the Arlington Assembly that may have work reduced or idled. Those locations include:
o Stamping: Flint Metal Center, Lansing Grand River Stamping
o Propulsion: Flint Engine Ops, Romulus
o Propulsion Components: Bay City, Saginaw
o Components: Grand Rapids
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