General Motors (GM) is feeling the financial strain as the United Auto Workers (UAW) strike continues to grow with no end in sight. The strike, which began in September, has now expanded to include car workers from General Motors, Ford, and Stellantis. This is the first time that the UAW strike has encompassed all three major automakers simultaneously.
According to a BBC report, the strike is now costing GM approximately $200 million per week. Earlier, the company had informed investors that the strike had already cost them around $800 million. The unpredictability of the industrial action has led GM to withdraw profit forecasts for the year, as they cannot determine when the standoff will conclude.
GM had offered a labor contract to address some of the concerns raised by union workers. The proposed contract includes a 23% pay increase, the reinstatement of pay adjustments tied to inflation, and other benefits. If approved, this four-year contract would leave the average GM employee with an $84,000 salary at the end of the contract.
Despite GM's efforts to resolve the dispute, the strike shows no signs of abating. The UAW is seeking a 40% pay increase over the course of a four-year contract. The union's president, Shawn Fain, has emphasized that the strike is about more than just pay and benefits. It is also a fight for economic justice and against the billionaire class.
GM expressed their disappointment with the ongoing strike, calling it "unnecessary and irresponsible." The company highlighted the negative ripple effects the strike is having on their team members, dealers, suppliers, and the communities that rely on them. GM is eager for the strike to end, stating, "It is time for us to finish this process."
As the strike continues to disrupt operations and cost GM millions of dollars, the automotive industry braces for the potential long-term repercussions on the price of automobiles. With no resolution in sight, both sides remain entrenched in their positions, prolonging the uncertainty and financial burden for GM.