The UAW strike cost General Motors a total of $2.9 billion USD, the automaker said in its Q3 earnings report released Tuesday.
The official tally surpassed analyst estimates, which placed the total cost of the UAW strike at around $2 billion. The automaker indicated it lost $750 million in the final two weeks of the strike alone. The net strike impact to the third-quarter earnings before interest and taxes adjusted was $1.0 billion, including $0.3 billion of favorable timing items.
GM said the total loss should equal out to roughly $2 per share. At the time of this writing, GM stock is trading at $38.36 per share, up 4.65% from Monday at market close.
Nearly 50,000 UAW workers walked off the job on September 16th demanding better wages and profit-sharing cheques, a freeze on their current healthcare plan, a clear path to employment for temporary workers and better job security via new product allocation. The 40-day strike officially ended on October 26th, making it the longest national walkout against GM since the 67-day UAW strike in 1970.
While GM had built up a large vehicle inventory in the U.S. in anticipation of a UAW strike, the walkout also brought plants in Oshawa, Canada and Ramos Arizpe, Mexico to a halt due to parts shortages. GM said the strike hit a total of 31 of its factories and 21 other facilities. The strike also impacted shipping companies contracted by GM.
In a statement released earlier this month, GM CEO Mary Barra said the new UAW contract “recognizes our employees for the important contributions they make to the overall success of the company, with a strong wage and benefit package and additional investment and job growth in our U.S. operations.”
“GM is proud to provide good-paying jobs to tens of thousands of employees in America and to grow our substantial investment in the U.S.” Barra also said. “As one team, we can move forward and stay focused on our priorities of safety and building high-quality cars, trucks and crossovers for our customers.”
Edit: A previous version of this article indicated GM’s CAMI plant in Ingersoll, Ontario had been affected by the strike, when it was instead the automaker’s plant in Oshawa, Ontario.