As the United Auto Workers (UAW) labor union continues its strike against the Big Three Detroit automakers, the costs are adding up. Now, financial services firm J.P. Morgan has released a new estimate that GM is currently losing $21 million every day as a result of the ongoing UAW strike. The UAW began its strike following the expiration of the previous labor contract on September 14th.
Per a report from Reuters, J.P. Morgan says that the UAW strike has put a $191 million drain on GM’s operating profit for the third quarter. J.P. Morgan also estimates that Ford’s operating profit has taken a $145 million hit, and is losing $18 million a day due to the strike.
A recent report from Anderson Economic Group estimates that the UAW strike has cost the U.S. economy nearly $4 billion so far.
It’s estimated that 25,300 UAW members are currently participating in the strike. The union represents 146,000 autoworkers across all three of the Big Detroit makes (GM, Ford, and Stellantis). This is the first time in which the UAW has called for walkouts at all three automakers at the same time.
The UAW is currently employing a targeted strike strategy wherein union members at certain facilities are called on to strike, as opposed to all union members at all facilities, all at once. The targeted strategy is expected to provide UAW negotiators with greater flexibility.
The initial round of strikes included the GM Wentzville plant in Missouri and Ford’s Michigan Assembly plant. A week later, the UAW expanded the strike to include 38 parts distribution sites belonging to GM and Stellantis. At the time, the UAW opted not to expand the strike against Ford, citing more substantial progress in contract negotiations. The following week, the UAW expanded its strike a second time, targeting the GM Lansing Delta Township plant in Michigan and Ford’s Chicago Assembly plant in Illinois, but opting not to expand the strike against Stellantis, citing more substantial progress with Stellantis in negotiations.
The strikes have had ripple effects at all three automakers. GM has idled production at the GM Fairfax plant and furloughed more than 160 workers at two metal centers due to a lack of work stemming from the UAW strike.