The U.S. Automotive Sector Strike Extends
The U.S. Automotive Sector Strike extends, and rather than easing, pressure has intensified with Stellantis.
The decision by the United Auto Workers union extends the strike action, which has been ongoing for nearly six weeks, to the GM assembly plant in Arlington, Texas (south), involving an additional 5,000 workers after the group reported results that exceeded expectations for the third quarter of the year.
Amid the pressure, the strike in the U.S. automotive sector demands wage improvements in line with the financial performance of the “Big Three” in the U.S. automotive sector – GM, Ford, and Stellantis.
Meanwhile, amidst the strike in the U.S. automotive sector, GM announced on Tuesday that it reported a net earnings per share of $2.28 in the third quarter.
However, analysts had predicted $1.87. Similarly, net income dropped by 7.3% to $3.06 billion on a year-on-year basis. GM’s revenue increased by 5.4% year-on-year to $44.13 billion.
The U.S. Automotive Sector Strike Extends: Stellantis
According to the UAW, the strike movement now reaches “GM’s most significant and profitable plant.”
The manufacturer reacted by expressing its “disappointment at the escalation of this futile and irresponsible strike” that “affects our employees, who sacrifice their quality of life and has a negative collateral effect on our dealers, our suppliers, and the communities that depend on the company’s activity.”
GM defended its latest offer presented to the union last week, which, according to the company, increased “around 25% on already substantial and historic offers.”
At the close of Wall Street, General Motors lost 2.31% to $28.55, a yearly low for the group, which did not provide forecasts for 2023 due to the ongoing strike, with uncertain impact.
On Monday, October 23, 6,800 workers from a Stellantis RAM truck factory joined the U.S. automotive sector strike.
This factory is the “largest and most profitable” within the group, located in Sterling Heights.
The total UAW membership stands at 146,000, spread among Detroit’s “Big Three,” which are facing a simultaneous strike for the first time. Of these unionized workers, over 45,000 remain on strike.
Eight assembly plants and 38 auto parts distribution centers are affected in 22 states across the country.
The strike in the U.S. automotive sector continues as the parties negotiate four-year collective agreements, discussions that include pensions and measures to adjust income to the changing cost of living.
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