The United Auto Workers (UAW) union has gone on strike against General Motors, following failed contract negations between the union and GM over the weekend. The strike took effect Sunday night, and is now hitting GM stock value, which saw a 5-percent drop as of this writing.
GM stock value was down to $37.05 per share Monday afternoon, a loss of $1.81 per share from last week’s closing value $38.86. Monday’s loss follows a small gain of less than 1 percent seen last week, with GM stock value rising $0.08 from the previous week’s closing value of $38.78.
Indeed, pressure is mounting for GM to find a solution, and quickly. GM is also facing a halt on vehicle deliveries, as the Teamsters Union recently announced it will show solidarity with the UAW.
In the midst of the UAW strike and contract renegotiations between the union and GM, the UAW is also facing an ongoing corruption probe from the FBI, which has already seen ten individuals arrested thus far. Last month, the FBI raided to home of UAW President Gary Jones in connection to the investigation, as well as the home of former union president Dennis Williams.
In addition to talks with GM, the UAW is in the middle of contract negotiations with the other two automakers of the Big Three, Ford and FCA.
“Local Union leaders from across the nation met Sunday morning after the 2015 General Motors Collective bargaining agreement expired Saturday night and opted to strike at midnight on Sunday,” the UAW said in an official release. “The autoworkers are calling on the Big 3 automaker to recognize the contributions and sacrifices that the company’s UAW members have made to create a healthy, profitable, industry.”
It remains to be seen how long the strike will last, with roughly 50,000 union workers walking out on GM. This is the first such walkout since 2007.
Contract negotiations resumed Monday morning.