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.
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Comments
Hang in there GM. You will lose a hell of a lot more if you give into the UAW. Crush those greedy A-holes!!!!!
Let’s just hope this doesn’t put a crimp on Mary’s pantsuit collection!
Stop the bleeding and conserve capital, lock the doors.
If the UAW keeps playing games like they are, they won’t need to worry about a contract. Everyone will switch to forgein competition. Look at your union president salary compared to yours
Ya, because Wall St asshats get numbers right all the time.
When GM says what the daily loss is, I’ll believe that number.
Fire all of them!
Let’s hope this doesn’t impact Mary’s pay.
The UAW and Detroit makers…..locked in step toward a failed business model.
They need to negotiate and reach an agreement. That’s how the real world works.
Simple as that.
Just more push where auto production will go to other countries. Dock workers and long shore men will like that, then they go on strike!
UWA may just shoot themselves in the foot. My father always said, “don’t get greedy”.
The UAW leaders set the bar too high, it’s unrealistic to think the Big 3 will ever agree to their demands. I was on strike in 1998 for seven weeks for a lot less, I understand why they think they deserve more with record profits. Then reality sets in, if they offer close to 30% and a COLA better take it. I don’t know how the union is going to explain this to the members after a lengthy strike. I wish it could work out for everyone, but that’s not likely. There are NO winners in a strike. Fighting against each other isn’t the answer, taking on the foreign competition is the battle. Tesla is probably the biggest near term challenge. Good luck, we need a healthy competitive domestic auto industry.
Alot of old timers in here that don’t understand the economy! If the cost of living rises so do wages, simple as that! Quit kissing corporate butts and support your local American neighbors!
Spoken like a true Union leech.
More free lunches and health care for all!
I don’t usually comment much but there are a lot of envious haters in here. I am a union member and not ashamed to say it. To all of haters so we supposed to let those companies make tremendous profits and we stay pat. People need to wakeup to cooperate greed!
To all the haters how in the hell do you think you get paid what you are paid the goodness of managements heart. They base your salaries off of union salaries to keep good help so if we the UAW goes down your ass will follow.