mobile-menu-icon
GM Authority

GM Says UAW Strike Cost It $2.9B – Surpassing Analyst Estimates

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.”

Subscribe to GM Authority for more GM UAW news and around-the-clock GM news coverage.

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.

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. So wait, are all workers back to work? I thought they were still out for the short term, even with the ratification

    Reply
  2. What about the cost to the dealers – how much money did each store lose during the strike. Who is going to help those dealer operators?

    Reply
    1. First, If the dealers would educate the customer that buying GM DOES NOT mean buying American, we all would not be in this mess.
      Dealers make as much selling a Mexican Korean or Chinese GM car and could give a crap about buying American products. They are just as bad as management. They are concerned about making the most money no matter who it hurts.
      Dealers avoid teaching customers to buy American with vin starting with 1,4 or 5 products.
      Second dealers are the face of GM not the workers at the plants.
      I like many others have been screwed by GM dealers and will not buy GM again.

      Reply
      1. I was a Ford customer for years. When I couldn’t get a good price or good service I went to GM. I don’t know what the answer is, I have had good luck with my GM’s and good service, so I can’t be to concerned about their “politics”. I’m concerned with getting a good deal, good service and a reliable vehicle.

        Reply
  3. Correction. The Cami plant in Ingersoll was NOT affected by the strike and did not shut down during the strike. In fact, we cancelled a planned layoff that had been anticipated long before the strike began.

    Reply
    1. Thanks Paul, that’s my mistake. It was Oshawa that was affected, not CAMI.

      Reply
  4. If GM lost $2.9 billion (an incredible amount), how much money would it have taken to give the strikers what they wanted? Would that have been less than $2.9 billion?

    Reply
    1. Not over the long term. Lol and the workers already made off like bandits with the new deal as it stands.

      Reply
    2. Funny how GM said they didn’t have the estimated 300 million to retool the Lordstown plant but were able to take an almost 3 billion dollar loss.
      They seem to find the money to retool two Mexican plants one for the Mexican blazer and one for the new Mexican onix. Oddly a sedan that GM says no one is buying.

      Reply
  5. If GM was willing to bargain in good faith, they wouldn’t have lost any money. I worked the ore mines in Minnesota for over 30 years. Went through strikes and lay-off. It was all a show of strength by the company. For what little we asked for and got, it hardly put a dent in their assets. Typical big business fat cats!

    Reply
    1. I hope this doesn’t affect Bara’s $22,000,000 Compensation plan for this year.

      Reply

Leave a comment

Cancel